Peru issues sovereign bonds for S/ 9,185 million to the international market after three years

Peru has not issued national currency bonds in the international market since 2019.

This Wednesday the Peruvian State issued sovereign bonds for S/ 9,185 million maturing in 2033, the largest operation in local currency, so far this year, in Latin America. Demand reached close to S/ 20,000 million and the yield rate obtained was 7.35%.

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In addition, a debt management operation was started consisting of the repurchase and/or exchange of sovereign bonds 2023, 2024, 2026 and 2028 and global bonds in dollars 2025, 2026, 2027, 2030 and 2031, the same as It will be partially or totally financed with the issuance of the new 2033 sovereign bond.

“The placement of the new sustainable sovereign bond, which constitutes a new 10-year reference, was carried out in a scenario motivated by a high demand from investors that at its best moment reached around S/20,000 million. The offer began with referential levels of 7.70%, finally obtaining a coupon and rate of return of 7.30% and 7.35%, respectively,” reported the Ministry of Economy and Finance.

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In this way, Peru enters the international market after more than 3 years of issuing bonds in local currency, in a context of great expectations on the part of international investors, recognizing the strengths of the Peruvian sol currency.

“Our country is returning through the front door to the international market, it is a historic issue in soles since it marks the return of Peru to international markets after the pandemic, with this issue investors recognize the strength and resilience of the Peruvian economy , its solid macroeconomic fundamentals and the responsible management of its fiscal accounts”, remarked the Minister of Economy and Finance, Alex Contreras Miranda.

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In addition, the official commented that in this government Peru has been working and promoting measures for the recovery of its economy and to restore the confidence of investors, “something that we are achieving step by step with the clear commitment to improve the quality of life of all Peruvians,” he added.

This is the largest operation in local currency so far this year in Latin America and is due to the recovery of investor confidence in the Peruvian economy and in the strength of the sun.

“This placement was the first sustainable bond in local currency and the demand for these instruments doubled the offer. Peru has not issued bonds in national currency in the international market since 2019. This is the largest operation in local currency, so far this year, in Latin America and is due to the recovery of investor confidence in the Peruvian economy and in the strength of the sun”, said the minister.

Likewise, Contreras specified that the operation is part of the Comprehensive Management Strategy of Assets and Liabilities that the Ministry of Economy and Finance (MEF) has been implementing, which includes among its actions the issuance of sustainable bonds and the solarization of the debt “, I note.

Contreras said that one of the reasons why it was not possible to enter the international market last year was that investors had many fears, despite the fact that the sun was showing signs of strength.

“Dispelling these fears contributed to the stabilization of the social situation and the recovery process of the economy. To this is added the confidence that there is in the Con Punche Peru program, key in the reactivation process, “said the head of the MEF.

He also stated that foreign investors were previously more optimistic about the Peruvian economy compared to local investors. “We see a contagion of that optimism. Everyone is beginning to trust Peru and this generates a greater capacity to attract investment,” the official said.

In addition, Contreras asserted that this operation is also a boost to the management of President Dina Boluarte.

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