Peru gives results in offers for domestic bonds, global bonds

By Mary-Katherine Stinson

Lexington, Ky., June 7 – The republic of Peru announced the results of its combined tender offer and/or exchange offer for sole-denominated bonos soberanos, according to a press release. In a separate press release, the republic gave results for its tender offer for its global bonds.

Domestic bonds

Noteholders had the choice of either a tender offer purchase price or an exchange consideration of new 7.3% bonds due 2033.

The offers expired at 5 p.m. ET on June 6.

The results for each series, including the previously reported detailed tender considerations versus exchange considerations for each of the series, are the following:

• For the S./ 1,309,373,000 outstanding 5.2% bonds due 2023, S./ 804,178,000 were tendered and accepted in the exchange offers and S./ 120,401,000 were tendered and accepted in the tender offers for a tender purchase price of S./ 1,000 or S./ 999 for the global depositary notes or an exchange consideration of S./ 1,002.37 of new notes;

• For the related 5.2% global depositary notes due 2023,, S./ 1,073,000 were tendered and accepted in the tender offers;

• For the S./ 6,740,798,000 outstanding 5.7% bonds due 2024, S./ 2,381,529,000 were tendered and accepted in the exchange offer and S./ 118,619,000 were tendered and accepted in the tender offers for a tender purchase price of S./ 998.75 or S./ 997.75 for the global depositary notes or an exchange consideration of S./ 1,001.12 of new notes;

• For the related 5.7% global depositary notes due 2024, S./ 960,000 were tendered and accepted in the exchange offer and S./ 1,736,000 were tendered and accepted in the tender offers;

• For the S./ 12,516,553,000 outstanding 8.2% bonds due 2026, S./ 936,938,000 were tendered and accepted in the exchange offer and S./ 338,433,000 were tendered and accepted in the tender offers for a tender purchase price of S./ 1,061.25 or S./ 1,060.25 for the global depositary notes or an exchange consideration of S./ 1,063.77 of new notes;

• For the related 8.2% global depositary notes due 2026, S./ 359,557,000 were tendered and accepted in the exchange offer and S./ 3,839,832,000 were tendered and accepted in the tender offers;

• For the S./ 16,625,287,000 outstanding 6.35% bonds due 2028, S./ 1,927,482,000 were tendered and accepted in the exchange offer and S./ 436,164,000 were tendered and accepted in the tender offers for a tender purchase price of S./ 992.50 or S./ 991.50 for the global depositary notes or an exchange consideration of S./ 994.86 of new notes; and

• For the related 6.35% global depositary notes due 2028, S./ 688,335,000 were tendered and accepted in the exchange offer and S./ 2,057,017,000 were tendered and accepted in the tender offers.

Each of the considerations is based on S./ 1,000 notes.

The exchange consideration for each series of existing bonds was determined by dividing the purchase price for the applicable series of existing bonos soberanos by the issue price of the new bonos soberanos being concurrently offered for cash, which was 99.7631.

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 had to complete an eligibility letter.

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.

Dollar offer

As previously reported, the republic was also conducting a tender offer for five dollar-denominated global bonds.

The U.S. bond tender offers also expired at 5 p.m. ET on June 6.

Peru has accepted all the old bonds tendered in the offer.

As of the expiration date, the following bonds were tendered and accepted for purchase:

• $653,306,000 of the $1,541,616,000 outstanding 7.35% bonds due 2025 for $1,055 per bond;

• $385,585,000 of the $1 billion outstanding 2.392% bonds due 2026 for $943.75 per bond;

• $261,614,000 of the $1,013,140,000 outstanding 4 1/8% bonds due 2027 for $985 per bond;

• $55,818,000 of the $750 million outstanding 2.844% bonds due 2030 for $877.75 per bond; and

• $272,018,000 of the $3.75 billion outstanding 2.783% bonds due 2031 for $856.50 per bond.

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

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106), HSBC Securities (USA) Inc. (866 HSBC-4LM, 212 525-5552), J.P. Morgan Securities LLC (866 846-2874, 212 834-7279) and Santander US Capital Markets LLC (855 404-3636, 212 940-1442) are the dealer managers for the U.S. tender offer.

Global Bondholder Services Corp. is the information agent for the U.S. offers (212 430-3774, 855 654-2014, contact@gbsc-usa.com, https://gbsc-usa.com/Peru).

Settlement of both the combined tender offer and/or exchange offer for sole-denominated bonos soberanos and the U.S. tender offer is expected for June 12.

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