Amid an uncertain and volatile international financial scenario, the Government of Peru has carried out a successful placement of bonds with a demand that was four times greater than the supply,Peruvian Ministry of Economy and Finance (MEF) informed.
This way Peru has issued a new global benchmark bond denominated in US dollars with a 12-year maturity, achieving the lowest coupon rate in the history of the Republic.
In this regard, the Global Bond 2027 was issued worth US$1.25 billion with a rate of return of 4.15%, a coupon rate of 4.125% and a price of 99.766%.
This new bond has established a liquid reference point for the middle section of Peru’s yield curve.
The issuance had a demand of about US$5.4 billion, which was 4.3 times the amount offered, which demonstrates investors’ confidence in the Peruvian economy despite volatility experienced in global markets.
Segura highlighted the good results of the operation, which is very important for the country, because it reinforces the Peruvian position in international markets, as shown in investors’ interest in Peruvian papers.
The operation’s success is even more remarkable if account is taken of the fact that Chinese stocks tumbled 6.2%, its sixth largest daily decline, while copper price continued its downward trend of the past weeks.
In addition, it should be noted that regional currencies weakened against the US dollar: Colombia (0.19%), Chile (0.54%) and Peru (0.22%).
In spite of this situation, Segura noted that the optimal conditions of the operation show the differentiation of international investors due to the high quality of Peruvian credit, which is grounded on solid economic foundations, and fiscal and monetary policy.
It is worth mentioning that the Peruvian government had not issued a new benchmark in dollars since 2010, so this issuance contributes to create a more complete and efficient yield curve.