Peru to buy S/. 74.32 million of 2020 bonds under stand-alone tender

By Marisa Wong

Los Angeles, Dec. 2 – The Republic of Peru announced the results of its stand-alone cash tender offer for its existing S/. 231,125,000 of 7.84% bonos soberanos due 2020, including bonos soberanos in the form of global depositary notes previously issued by Citibank, NA as depositary.

Peru set the maximum purchase amount of the 2020 bonds at S/. 74,324,000, the amount tendered as of the expiration of the offer at 5 p.m. ET on Nov. 27, according to a Friday press release.

Settlement is scheduled for Dec. 4.

As previously announced, per S/. 1,000 principal amount of the old bonds tendered and accepted for purchase, holders will receive S/. 1,041.99 plus accrued interest.

Holders who tender GDNs will receive S/. 1,040.99 per S/. 1,000 GDN tendered in the offer.

Holders whose old bonds are tendered and accepted for purchase will be paid in soles, and holders of GDNs whose old bonds are tendered and accepted for purchase will be paid the equivalent amount of the purchase price in dollars.

Switch tender

Peru had also launched on Nov. 21 a separate switch tender offer for two series of U.S. dollar-denominated notes and two series of sol-denominated notes.

The offer expired at noon ET on Nov. 21 for non-preferred tenders and at 4 p.m. ET on Nov. 21 for preferred tenders. Settlement is expected to be on Dec. 3.

Peru set the maximum purchase amount for the sol-denominated sovereign bonds and the dollar-denominated global bonds at S/. 5,292,350,000 and $153,339,000, respectively.

Peru had offered to purchase for cash a capped amount of its outstanding $1,646,481,000 of 7.35% global old bonds due 2025, $1,061,614,000 of 4 1/8% old global old bonds due 2027, S/. 1,776,910,000 of 5.2% bonds due 2023 and S/. 11,544,133,000 of 5.7% bonds due 2024, including in the form of GDNs previously issued by Citibank as depositary.

Peru is not the issuer of any GDNs and is only offering to purchase the old bonds underlying any GDNs.

The purchase price per S/. 1,000 or $1,000 of bonds tendered is S/. 1,100.63 for the 5.2% bonds, S/. 1,112.63 for the 5.7% bonds, $1,264.59 for the 7.35% bonds and $1,119.64 for the 4 1/8% bonds.

However, holders who tendered sol-denominated non-preferred GDNs will receive, per S/. 1,000 principal amount, S/. 1,099.63 for the 5.2% bonds and S/. 1,111.63 for the 5.7% bonds.

Holders will also receive accrued interest.

The tender offers are subject to some conditions, including the pricing and closing of a new issuance of sol-denominated sovereign bonds.

Peru announced on Nov. 22 that it priced new 5.35% sol-denominated bonos soberanos due 2040 and a further issuance of its 5.4% sol-denominated bonos soberanos due 2034.

The offers are not conditioned upon any minimum participation of old bonds.

BofA Securities, Inc. (646 855-8988 or 888 292-0070), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), HSBC Securities (USA) Inc. (888 HSBC-4LM or 212 525-5552) and J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279) are the dealer managers for both offers.

Global Bondholder Services Corp. (212 430-3774 or 866 470-3800) is the information agent and tender agent.

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