Payet, Rey, Cauvi, Pérez Abogados advised BBVA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Itau BBA USA Securities, Inc. y Morgan Stanley & Co. LLC as Underwriters in connection with a global bond issuance in the international markets by the Republic of Peru for a total amount of US$4,000,000,000.
The bonds were issued at 1.862%, 2.780%, and 3.230% due 2032, 2060, and 2121 respectively. The interest rates obtained are at historically low levels, with the 2121 Bond being the first centennial bond issued by Peru in its history.
The net proceeds from this offering will be used to finance expenditures related to the prevention and containment of COVID-19, to stimulate of the economy and for expenditures included in the Public Sector Budget for Fiscal Year 2020 that were affected by the reduction of income due to COVID-19.
Demand for the bonds came from investors accounts in the United States, Europe, Asia and Latin America and orders reached USD$15,000,000,000.
The Payet, Rey, Cauvi, Pérez Abogados team included partner José Cúneo and associate Mario Lercari.
“This deal set unprecedent landmarks for the Republic of Peru, with historically low rates and the first ever 101-year bond. This successƒul issuance is market recognition oƒ Peru’s fiscal strength and confirms the confidence oƒ ƒoreign investors in Peru, despite the political environment. For us, it has been extremely gratiƒying to have participated in this transaction because oƒ its relevance in Peru’s eƒƒorts to deal with the crisis created by the COVID-1e pandemic.” said José Cúneo, Partner.