Peru successfully issues its first social bond in euros, for 1,000 million


Lima, November 10 (EFE) .- Peru on Wednesday successfully placed its first social bond in euros on the international market, for a total of 1,000 million of this currency, at a coupon rate of 1.95%, a reported the Ministry of Economy and Finance. (MEF).

This issue managed to capture a request of more than 2,000 million euros and was made with a new reference to 15 years, expiring in 2036, detailed the ministry in a press release.

He added that he had the participation of more than 120 investors with “high quality” accounts from Europe (80%), America (14%), Asia (2%) and other regions. (4%), which made it possible to reduce the initial benchmark rate by 25 basis points.

The breakdown by type of investor was 66% Asset managers, 12% insurance companies, 7% banks, 4% pension funds and 9% “among others”.

This bonus is associated with attention expenditure related to support for vulnerable groups and people in vulnerable situations, access to housing, education and essential health services, as well as support for SMEs and social programs to reduce and / or prevent unemployment.

The MEF pointed out that the euro issue represents one of the financing options and access to the various markets that Peru has “by taking advantage of the windows of opportunity that arise” and contributes “to diversifying its base. ‘investors, by optimizing the debt profile. public and cover financing needs at a competitive and reasonable cost. “

He added that the global bond issue in dollars and euros put in place in recent days by Peru is part of the same debt transaction and “once again demonstrates the appetite of investors for instruments of the Peruvian public debt “.

He considered that, moreover, it shows “confidence in the macroeconomic strength of the Peruvian economy, being one of the countries in the region with the best growth prospects for the period 2021-2025”.

“This operation is in line with the prudent management of public finances and is in line with the financing strategy adopted by the Peruvian government which is being implemented, which contains within the framework of the challenges proposed the implementation of the issuance of sustainable bonds, ”he concluded.

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