Peru Taps Global Market for First Time This Year With Sol Bond

Peru is tapping global markets for the first time this year, issuing a sustainability bond to buy back existing sovereign debt and finance government spending in equal measure.

(Bloomberg) — Peru is tapping global markets for the first time this year, issuing a sustainability bond to buy back existing sovereign debt and finance government spending in equal measure.

The sol-denominated notes, which are set to mature in 2033, will fund green and social expenditures, according to person familiar with the matter. Initial pricing discussions call for a yield of 7.7%, the person said.

The South American nation is looking to buy back existing sol-denominated sovereign bonds that are coming due this year, 2024, 2026 and 2028, according to a statement by the government. It didn’t say how much it would buy back. Citigroup, HSBC, JPMorgan & Chase and Banco Santander are managers for the bond sale.

Peru’s Finance Minister Alex Contreras had said earlier in May that the country could issue bonds if they’re in local currency and at an attractive rate.

Peru also said Wednesday that it planned to buy back existing dollar-denominated bonds that mature from 2025 to 2027, as well as those due in 2030 and 2031.

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