By historical standards, the activity of Peruvian issuers in the capital markets has been sluggish in recent years – but Bank of America has nevertheless managed to lead the bulk of relevant deals coming out of the country.
According to the bank, its fingerprints are on 12 out of 14 deals undertaken by Peruvian issuers in the twelve months to September 30. It has also participated in $8.2 billion in new international debt issuances for domestic issuers over that period. And the bank led the investment banking league tables for Peru with an 18.1% market share, according to Dealogic.
Notable BofA deals of that period include a $5.56 billion liability management exercise for the Republic of Peru and corporate placements by the likes of Aenza, Interbank and Pluspetrol.
It also played a key role in the complex refinancing of $750 million in debt owned by Volcán, a mining company, which involved the renegotiation of a syndicated loan with more than ten banks from different Latin American countries, while dealing with bondholders to refinance notes previously issued by the firm. BofA claims that the deal of the first of its kind in the Peruvian market.
Another landmark deal was the reopening of the 2043 bonds issued by Municipalidad Metropolitana de Lima, MML. BofA says that it was the first transaction in Peru where 144A/RegS notes were issued by a Peruvian Trust under Peruvian Law, while the deal was cleared through the DTC system and listed in the Singapore Stock Exchange.
Although the transaction was denominated in local currency from a country prone to heightened volatility, it was oversubscribed. Previously, in December 2023, BofA had advised MML in its debt IPO, valued at the equivalent of $317.2 million in local currency.
The firm was also active in the financial institutions segment, participating in landmark deals for BCP and BBVA Peru and confirming its status as a leading player in the country’s debt capital markets.