Peru Bonds Below Target

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.