LIMA, Oct 28 (Reuters) – Peru has placed $ 4 billion in bonds with high demand from investors, the government said on Thursday, in its first transaction since Fitch recently downgraded the mining country since the president came to power. leftist Pedro Castillo.
The instruments were two new “sustainable bonds”: one for $ 2.25 billion with a 12-year maturity and another for $ 1 billion over 50 years. The third was for $ 750 million in a sovereign bond reopening in 2051, said Deputy Minister of Economy Álex Contreras.
The coupon rates were 3.0% for the 12-year bond, 3.60% for the 50-year bond and 3.55% for the 2051 bond; closing with a spread over the United States Treasury of 150, 180 and 150 basis points, respectively, he specified.
The offer generated a demand of about $ 10 billion, and the 12-year securities attracted about $ 6 billion in orders, according to market sources, reported IFR, a financial service of Refinitiv.
“The demand has been almost three times the supply and that there was a recent review in the credit rating,” Contreras told Reuters by phone. “This reveals that the best rating is given by the market and Peru continues to be one of the lowest risk countries in the region,” he added.
In mid-October, Fitch downgraded Peru’s long-term foreign currency debt rating to BBB from BBB +, citing that the Andean country’s economic and medium-term investment prospects for Peru have weakened as a result of political volatility in the US. last years.
Also, Moody’s downgraded the sovereign’s rating in September to Baa1 from A3 due to a “fractured political environment” in Peru and Standard & Poor’s revised the country’s long-term debt rating outlook from stable to negative.
The operation marked the first exit to the markets under the presidency of Castillo, who assumed power at the end of July scaring investors after threats of a greater role for the state in the economy, although he later moderated his speech.
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