reported that the Peruvian government has received international recognition through the "Sovereign Local Currency Deal of the Year" award, granted by LatinFinance — a publication specializing in the analysis of leading sovereign and corporate capital market transactions in Latin America.
The recognition highlights the Republic of Peru's successful benchmark transaction in local currency (PEN) maturing in 2035, which at its peak attracted demand exceeding S/14 billion (over US$4.172 billion) from a broad base of high-quality institutional investors, both domestic and international.
The final allocation was 59% to international investors and 41% to local investors, which helped optimize the interest rate and expand the target size of the issuance.
The issuance, totaling S/10 billion (about US$2.980 billion) and carrying a coupon rate of 6.85%, formed part of a comprehensive public debt management strategy aimed at securing the financing needs of Fiscal Year 2025 at a competitive cost and improving Peru's debt maturity profile.
The strategy was implemented in two stages: first, through the announcement of a domestic sovereign bond issuance accompanied by buyback and exchange operations; and subsequently, through an external issuance, together with liability management operations on bonds denominated in U.S. dollars and euros.
As a result of these operations, short-term fiscal pressure was eased, the debt maturity profile was improved, and the average life of public debt was extended from 13.1 to 15.5 years, while the share of local-currency debt increased from 53.6% to 54.6%, reducing exposure to foreign-exchange risk.
The operation delivered tangible benefits for the country by enabling the Peruvian State to secure financing on favorable terms, reducing risks, and contributing to the strengthening of public finance sustainability.
The strong demand recorded and the yield achieved reflect investor confidence in Peru's economy, translating into lower financing costs for the State and, therefore, greater fiscal space to allocate resources to priorities such as health, education, infrastructure, and public services.
Likewise, by increasing the share of local-currency debt and extending the average maturity, vulnerabilities to external shocks are reduced and the country's macroeconomic stability is strengthened.
The distinction awarded at the "2025 Deals of the Year Awards" reflects international market recognition of Peru's prudent, technical, and consistent public debt management, as well as the strengthening of the local-currency debt market, reaffirming investor confidence in the country's macroeconomic fundamentals and fiscal sustainability.
The Ministry of Economy and Finance reaffirms its commitment to continue implementing a prudent, efficient, and transparent public debt management framework, in line with the State's comprehensive asset and liability management strategy.
This approach is aimed at preserving fiscal sustainability and ensuring Peru's competitive access to financial markets.