Peru

Peru grabbed the bond market’s attention on Monday with a $4bn triple-tranche issue including a 100 year bond despite the country being on its third president this month. But the country’s public treasury director said it was the all-in yield, not the desire to make headlines, that drove Peru to become the fourth Latin American borrower ever to sell a century bond.

Peru will become the fourth Latin American borrower to issue a century bond on Monday, selling a triple-tranche dollar issue including a 100-year bond despite the fact that the the country is on its third president this month.

Julio Velarde, the governor of the central bank of Peru (BCRP), insisted that the country had broad access to international financial markets as the sovereign’s bond spreads more than recovered the ground lost during recent political volatility.

Bond buyers snapped up three debut issuers from Latin America in the space of two days this week, jumping at rare chances to add variety and — in certain cases — juicier yields to their portfolios.

Peruvian private healthcare provider Auna sold its first international bond on Tuesday, overcoming major political volatility in its home country as bankers said the limited offering of Peruvian corporate paper played in the issuer’s favour.

Though the bond market reaction to the impeachment of Peru’s popular president was not as severe as it would have been in most Latin American countries, investors said that political volatility would continue to challenge the sovereign’s credit profile and that the situation presented risks for next year’s elections.

Minera Las Bambas (MLB), a subsidiary of Hong Kong-listed MMG, has raised an $800m loan from four Chinese banks.

Consorcio Transmantaro, the Peruvian transmission company, added $200m to its green bonds maturing in 2034 on Wednesday.

Consorcio Transmantaro, the Peruvian transmission company and one of the few Latin American issuers to have improved its credit profile this year, is turning to bond markets for the first time since April 2019 to finance investments.

Three Latin American companies announced plans this week to issue dollar bonds, as market participants say they are expecting Monday to kick off a hectic September in primary markets as issuers look to get ahead of potential US election volatility.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday just two business days after its largest domestic rival raised $850m in the same format.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday on the back of a 2.5 times subscribed order book, just two business days after its largest domestic rival sold $850m in the same format.