Peru Launches Debt Exchange

Peru is looking to push out maturities through the launch of an exchange offer for $3.36bn equivalent in dollar and euro bonds. The offer expiring April 14 targets holders of the 9.125% of 2012 in dollars, 7.500% of 2014 in euros, 9.875% of 2015 in dollars and 8.375% of 2016 in dollars, according to a prospectus. Those accepting will have their choice of reopened 8.75% of 2033 dollar bonds, or cash. The sovereign has capped the cash payment at $500m, with disbursements prorated in the event the limit is exceeded. The exchange spreads and reopening spread for the 2033s will be assigned at the close of the offer, with results announced April 15. Barclays and HSBC are managing the sale.