Peru may be planning a return to the international capital markets after a two-year absence, Reuters reported on Thursday.
The Latin American nation announced a new round of investor meetings and has hired Bank of America Merrill Lynch, BBVA, and Morgan Stanley to arrange such meetings in the U.S. and Europe, the report said, citing sources familiar with the situation.
Over recent years, Peru has shied away from dollar transactions as the nation focuses on developing its local capital markets through domestic bond issues in the local currency, the sol.
“We have been consistent in what we have defined as one of our main goals, in terms of de-dollarizing our debt portfolio up to a certain level,” Carlos Linares Penaloza, Peru’s general director for public debt and treasury, said this month, according to Reuters.
“Of course this doesn’t limit us if we see the need or the opportunity to go to the international market,” he said. “We are going to be open.”
The country may consider replacing old bonds with high coupons for newly issued securities, but such a transaction would not be a priority, Linares told IFR, on the sidelines of the annual meetings of the IMF in Washington this month, the report said.
The investor meetings are scheduled to be held in San Francisco on October 27, Los Angeles and London on October 28, and Boston and New York on October 29, the report said.
The last time Peru tapped the international markets was in early 2012, when it raised $1.1 billion.
The nation is rated A3/BBB+/BBB+.
Source: Reuters
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