Peru runs one-day cash tender offer for global bonds, bonos soberanos

By Susanna Moon

Chicago, Nov. 29 – The Republic of Peru is offering to purchase for cash global bonds and sovereign bonds or bonos soberanos, including bonos soberanos in the form of Global Depositary Notes previously issued by Citibank NA.

The tender offer was set to run for one day on Thursday from 8 a.m. ET until 11 a.m. ET for non-preferred tenders and for global bonds and until 1 p.m. ET for preferred tenders.

The maximum purchase amount will be determined by Peru, with pricing for each S/1,000 or $1,000 principal amount of preferreds as follows:

• S/4,400,890,000 of outstanding 7.84% bonos soberanos due 2020 with a purchase price of S/1,081.50 for preferred and non-preferred tenders;

• 7.84% Global Depositary Notes due 2020 with a purchase price of S/1,081.50 for preferred tenders and S/1,080.50 for non-preferred tenders;

• S/1,644,823,000 of outstanding 6% bonos soberanos due 2029 with a purchase price of S/1,025.80 for preferred and non-preferred tenders;

• 6% Global Depositary Notes due 2029 with a purchase price of S/1,025.80 for preferred tenders and S/1,024.80 for non-preferred tenders; and

• $149,214,000 of outstanding 7 1/8% global bonds due 2019 with a purchase price of $1,020.50 per $1,000 principal amount.

Holders will also receive accrued interest up to but excluding the settlement date of Dec. 6.

The tender is contingent on pricing and closing of a new issue of Peru's bonos soberanos due 2029, according to an announcement.

Peru said it expects to announce the maximum purchase amount at 9 a.m. ET on Nov. 30. The offer is not conditioned on any minimum amount of tenders.

The aggregate principal amount of bonos soberanos including those in the form of Global Depositary Notes outstanding as of Wednesday was S/6,045,713,000, the release noted.

The new bonds will be offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.

J.P. Morgan Securities plc (866 846-2874 or 212 834-7279), Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057), Santander Investment Securities Inc. (855 404-3636 or 212 940-1442), Scotiabank Peru SAA (+511 211-6040, ext. 18151 or 18153 or +511 207-2630) and Scotia Capital (USA) Inc. (800 372-3930 or 212 225-5559) are the dealer managers. D.F. King & Co., Inc. (888 626-0988, 212 269-5550, peru@dfking.com or dfking.com/republicofperu) is the information agent.

Scotiabank Peru is the billing and delivery bank for the bonos soberanos, JPMorgan is the billing and delivery bank for the Global Depositary Notes and Morgan Stanley is the billing and delivery bank for the global bonds.

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