Peru LNG Eyes Local Long Bond

Peru LNG, the LNG regasification project being built by Hunt Oil, is planning to issue $200m-$300m-equivalent in local bonds in Peru by year end. The tenor is likely to be 18 years and pricing will come at a spread over Libor, says a banker close to the process. The issuer is also considering dividing the issue into different tranches to offer shorter-dated paper to suit small investors. Among the possibilities being considered is a smaller amount of roughly $50m in 5-year notes aimed at retail buysiders, with the remainder carrying the full 18-year final maturity and a 5-year grace period. The project doesn’t need the local portion given the success in placing more than $1bn in bank and multilateral debt, notes one banker. But he adds it is important to offer a stake in a project of such national importance to the local buyside. Banco de Credito del Peru will assume a co-lead role in an eventual offering, with a second co-lead to be named as early as this week.