Peru is heading to the international market for the first time in more than a year as it looks to raise $3 billion to fund a tender offer.
The Peruvian government has hired Bank of America, Citi, JPMorgan and Santander as joint bookrunners on the local-currency bond offering, according to a statement published in the official gazette El Peruano on Monday. Santander’s Peruvian branch will act as placement agent on the deal, the statement said.
On Tuesday, the sovereign kicked off the buyback, offering to repurchase a portion of the €2.09 billion ($2.25 billion) outstanding in two series of bonds in euros and some of the $6.4 billion outstanding in five series of US-dollar notes.
The government is offering to pay EUR984.43 and EUR988.28 for every EUR1,000 in principal on its 2.75% 2026 and 3.75% 2030 bonds respectively. It put up between $859.42 and $1,022.37 for every $1,000 on the dollar notes, it added. The offer deadline is June 25.
Peru is also looking to exchange four series of local notes for the new bonds as part of the tender offer.
The country sold PEN9.19 billion ($2.4 billion) worth of 10-year global sustainable bonds in the international market in May last year. It used the funds to buy back $1.63 billion in five series of notes that mature between 2025 and 2031.
S&P Global downgraded the country’s credit rating in April to BBB-, the lowest investment grade, saying lingering political uncertainty is hurting economic growth.