Category: Peru

Peruvian presidential candidate, Ollanta Humala, has seen his share of the vote fall 8 percentage points to 18.4% in the most recent opinion polls. Humala, a retired lieutenant colonel, has now slipped behind ex president Alan García who polled 20.8%. Conservative front-runner Lourdes Flores continues to consolidate her lead with 27.2% of the votes. Elections are due to be held on April 9.

One of the leading candidates in Peru’s upcoming April elections, Lourdes Flores, says that she is expecting world-famous Peruvian economist Hernando de Soto to join her administration, should she win. De Soto, considered by many to be the region’s leading economist, is the founder of the think-tank Institute of Liberty and Democracy in Lima and author of ‘El Otro Sendero’ (‘The Other Path’). A recent poll shows conservative candidate Flores with an 8% lead over nearest rival, nationalist Ollanta Humala.

Fernando Zavala Lombardi, Minister of Finance of Peru will address an audience of issuers, investors, and intermediaries at the next Latin American Borrowers and Investors Forum in Miami on February 16th. The forum will bring together the leading institutions and individuals that shape Latin America’s capital markets. They include Jeff Huther, Director of Debt for the U.S. Department of Treasury; Atul Mehta, Head of Latin America & the Caribbean at the IFC; Andreas von Wedemeyer, President of AFP Profuturo and Arthur Steinmetz, Head of International Bond Trading at Oppenheimer Funds Inc.; among others. To learn more please visit www.latinfinance.com/labif

The pace of Peru’s economic growth quickened in November, increasing by 7.9% against October’s rate of 7.2%. The growth was driven in main by the mining, natural gas and fishing sectors, which increased output by approximately 50%, 70% and 30% respectively. Annual inflation last year is estimated to be 6.3%.

Peru’s Electoral Tribunal has ruled that former president Alberto Fujimori may not stand as a candidate in the country’s upcoming elections in April due to his ‘special disqualification’. Fujimori is currently being held under arrest in Chile awaiting extradition to Peru where he will likely face charges of corruption and human rights abuses. He resigned his presidency in 2000 after fleeing to Japan and in 2001 was banned from holding public office in Peru until 2011.

Ex president of Peru, Alberto Fujimori, has been registered by his eldest daughter and former ‘first lady’, Keiko Fujimori, and supporters as a candidate in the country’s presidential elections slated for April. This, despite being held under arrest in Chile awaiting extradition to Peru to face charges of corruption and human rights abuses. Fujimori, who resigned his presidency via fax in 2000 after fleeing to Japan, has been banned from holding public office until 2011. The Electoral Court is due to rule on his registration this week.

US firm Hunt Oil, which is involved in the Camisea natural gas project in southern Peru, is to issue $150 million of corporate bonds in the local market today, Tuesday. The issue is being arranged in Peru by Banco de Crédito.

Peru’s economy expanded 7.21% in October compared with the same month in 2004, driven by a strong mining sector (up 15%). GDP grew by 6% between January and October, compared with the first 10 months of last year, and in line with the government’s forecast for annual growth this year.

Peru has reopened its 2025 bond issue to sell a further $500 million, increasing the total amount of the offering to $1.25 billion. The bonds carry a coupon of 7.35% and were placed at a yield of 7.25%. The deal was arranged by Citigroup. Peru’s move to tap the international markets is part of its strategy to repay an $830 million loan to the Japan Peru Oil Co (Japeco). Last week it raised $238 million through the sale of local currency bonds, below its target of $273 million. Peru says it will settle the remaining $92 million through a further local currency bond offering or directly from Treasury funds.

Peru sold $238 million in local currency bonds, below its $273 target, as part of a strategy to repay a loan to the Japan Peru Oil Co (Japeco). The local bonds, which mature on 20 August 2020, carry a coupon of 8.74% and were placed at a yield of 8.15%. Peru needs to raise at least $830 million to repay the Japeco debt and hopes to make up the difference with an international tranche before the end of the year.