Peru issues sustainable bonds for the first time

by Jonathan Adams
sustainable bonds

In this operation, the issues with maturities in 2034 and 2072, for 2,250 million and 1,000 million dollars, represented the first sustainable bonds issued by Peru

Peru placed sustainable bonds for 4,000 million dollars with maturities in 2034, 2051 and 2072 and coupon rates of 3%, 3.55% and 3.60%, in a successful debt operation in the international market, according to the Ministry of Economy and Finance.

The placements of Peruvian bonds were made in a positive scenario due to a demand from investors that at its best exceeded 10 billion dollars and closing with a spread over the United States Treasury of 150, 150 and 180 points basic for the tranches of the years 2034, 2051 and 2072, respectively.

The Minister of Economy, Pedro Francke, declared that “it is the first time that Peru has issued sustainable bonds and we join the countries that carry out this type of issuance.”

The high demand and the successful placement of these Peruvian global bonds are a confirmation that international investors continue to consider that Peru’s macroeconomic fundamentals remain solid, he added.

In this operation, the issues with maturities in 2034 and 2072, for 2,250 million and 1,000 million dollars, represented the first sustainable bonds issued by Peru using the terms of the recently approved Sustainable Bond Framework.

The collection of resources with this tool has the purpose of financing projects and expenses that generate positive impacts on the environment and promote equitable and quality access to health, housing, and education services, the Peruvian ministry specified.

The three issues managed to concentrate a demand from more than 250 international and local investors.

The distribution of demand by region was mainly 57% of investors from America and 31% from Eastern Europe and Africa.



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