Peru begins liability management exercises for domestic, dollar bonds

Chicago, May 31 – Republic of Peru started two separate liability management exercises covering sovereign bonds issued in local currency (soles) and five dollar-denominated global bonds, according to a press release regarding the offers that started Wednesday.

Bonos soberanos

Peru’s first offer covers four local currency existing bonds and their related global depositary notes for each issue.

Noteholders may either exchange their existing bonds for new bonds/global depositary notes due 2033 or tender their bonds for cash.

Peru is expected to price some of the new bonds for cash, and the exchange consideration will be announced after the new bonds price.

The offer specifically covers, with their tender considerations per S./ 1,000 principal amount of existing bonds, but not the exchange considerations because those will be announced later, the:

• S./ 1,309,373,000 outstanding 5.2% bonds due 2023 for a tender purchase price of S./ 1,000 or S./ 999 for the global depositary notes;

• S./ 6,740,798,000 outstanding 5.7% bonds due 2024 for a tender purchase price of S./ 998.75 or S./ 997.75 for the global depositary notes;

• S./ 12,516,553,000 outstanding 8.2% bonds due 2026 for a tender purchase price of S./ 1,061.25 or S./ 1,060.25 for the global depositary notes; and

• S./ 16,625,287,000 outstanding 6.35% bonds due 2028 for a tender purchase price of S./ 992.50 or S./ 991.50 for the global depositary notes.

The tender considerations for the bonds will be paid in soles and the cash considerations for the global depositary notes will be paid in dollars.

The new bonds will be distributed via Rule 144A and Regulation S, so exchanging holders will need to complete an eligibility letter.

Dollar offers

Peru also started a stand-alone tender offer for dollar-denominated global bonds.

The issuer is offering to buy from the:

• $1,541,616,000 outstanding 7.35% bonds due 2025 for $1,055 per bond;

• $1 billion outstanding 2.392% bonds due 2026 for $943.75 per bond;

• $1,013,140,000 outstanding 4 1/8% bonds due 2027 for $985 per bond;

• $750 million outstanding 2.844% bonds due 2030 for $877.75 per bond; and

• $3.75 billion outstanding 2.783% bonds due 2031 for $856.50 per bond.

The cash considerations are based on $1,000 bonds.

The dollar tender offer is conditioned on the successful pricing and closing of the new notes offering.

Details

The offers will expire at 5 p.m. ET on June 6.

Global Bondholder Services Corp. is the tender, exchange and information agent for the offers (212 430-3774, 855 654-2014, contact@gbsc-usa.com, https://gbsc-usa.com/eligibility/peru).

The Peruvian market maker for the local currency offer is Banco Santander Peru SA (santransaccionperu@santander.us).

The issuer for the offers is Ministerio de Economia y Finanzas del Peru.

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