Peru has opened offers to exchange three outstanding dollar bond series for new debt due in 2038, a liability-management move that would extend maturities for investors whose tenders it accepts.
The offer covers $449,023,000 of bonds paying 4.125% and due in 2027, $465,675,000 of 2.844% bonds due in 2030, and $2,799,396,000 of 2.783% bonds due in 2031. Those figures are the outstanding principal eligible for the exchange, not amounts already tendered or accepted, according to Peru’s prospectus filed with the Securities and Exchange Commission.
Investors do not yet know the coupon on the new bonds or how much principal they would receive for each $1,000 of old debt. Peru plans to disclose those details after pricing a separate cash offering. It has not announced how much of the eligible debt it will take, and it may reject tenders or accept only part of them. Peru said the offer does not require a minimum participation level for any of the three series.
Holders whose bonds are accepted will receive new debt due in 2038, and their old bonds will be retired. Peru will also pay accrued interest in cash under the prospectus terms. The exchange itself provides no cash proceeds to the government. Peru says it intends to finance or refinance expenditures that may qualify under eligible green and social categories in its Sustainable Bond Framework, in an amount equal to the principal of exchange bonds issued; proceeds from the separate cash sale are intended for general government purposes.
Peru warned that the remaining bonds in each series could become less liquid after some are retired. The government offered these same three series among five eligible dollar bond series in a 2025 exchange for debt due in 2036. Peru describes the current transaction as part of its liability-management program.
The offers and withdrawal rights are scheduled to end at 5 p.m. ET on Nov. 17. Peru expects to report tender and acceptance amounts by Nov. 18 and settle the exchange on Nov. 20.
