Peru Set for Double Tap

Peru is readying a dual-tranche bond issuance of at least $1bn, set to price today. Both tranches are expected to be at least $500m or equivalent in size. The sovereign is issuing new 2050 bonds and retapping a 7.84% of 2020 PES-denominated issue. Whispers on the Baa3/BBB minus 2050 dollar portion are in the high 5.00% area yield, according to investors, who note this would mean some pickup to the 2037s trading to yield 5.15%-5.20%. Talk on the Baa3/BBB+/BBB sol-denominated retap is heard at 6.00% area, with the 2020 trading to yield 5.40%-5.50% prior to announcement. Bank of America Merrill Lynch and Morgan Stanley are managing.