Peru Plans Bond to Help Fund Repo

Peru plans to use $66m from its cash stockpile to fund last week’s bond buyback, the finance ministry says. It will refund this amount by selling domestic or external bonds at a later date when market conditions are acceptable. The sovereign agreed to exchange $1.80bn in 4 series outstanding global 2012-2016 bonds for $1.26bn in reopened 8.75% of 2033 notes and $500m cash, following the conclusion of an exchange offer. Proceeds from previous domestic bond sales are being used to meet the bulk of the $500m cash component, the ministry says.