Investors' interest in Peru reflects sound economic management

12:21 | Lima, Dec. 5.

Peru is positively perceived at the international level compared to its neighbors within the region, JP Morgan Peru General Manager Juan Carlos Arribas reported on Thursday.

In an interview with El Peruano official gazette, he said mining, infrastructure, consumption, education, and health stand out among the attractive sectors for investment.

According to Arribas, investment financing of companies using bonds in the capital markets is in line with the economic growth; and investment needs of corporate companies have not declined.

"We anticipate further investment next year, considering the expected growth of Peruvian economy," he remarked.

On the other hand, he said, this (bond) financing is encouraged by very low interest rates around the world. Besides, what Peruvian corporate companies —and even the Government itself— are doing is to finance themselves with long-term debt and with lower financing costs for debt reprofiling. 

"We believe the situation will continue and be very active next year. Today a medium-sized Peruvian company has access to international capital markets (to take on debt via bonds) at competitive interest rates and for long terms," the JP Morgan representative pointed out.

He went on to warn that political noise has an immediate effect on investment. 

"Global investors are looking at emerging markets such as Peru and all its neighbors, and today —with everything going on around us— we are very positively perceived by the international community," Arribas added.

For instance, he explained, its low country risk was confirmed by the recent issuance of Peruvian global bonds worth more than S/10 billion (about US$2.95 billion) at never-before-seen interest rates.


Publicado: 5/12/2019