Sunday, May 22, 2022

Peru receives award for 101-year sovereign bond issued in 2020

Peru receives award for 101-year sovereign bond issued in 2020

The Republic of Peru has received the Sovereign Bond of the Year Award granted by LatinFinance, in recognition of the successful sovereign bond issuance of US$4 billion made in November 2020 by the Ministry of Economy and Finance (MEF) in order to finance the expenses arising from the health emergency situation caused by COVID-19.
The award-giving ceremony took place on March 10, 2022, in New York City, in the presence of more than 250 investors, authorities, and personalities from the world of finance.

The event featured finance and public credit officials from Mexico, Argentina, Panama, and the Dominican Republic, as well as investment fund management companies, stock market representatives, investors, among others.

LatinFinance considered various issuances from a wide range of participating countries and industries. Besides, entries were judged on various factors, including innovation, foresight, and execution quality of the finance strategy.

In November 2020, the Ministry of Economy and Finance announced the issuance of dollar-denominated global bonds with maturities of 12, 40 and 101 years in the international market, obtaining a demand of more than US$15 billion, four times the amount allocated, and drawing orders from more than 240 foreign investors.

The 2121 Global Bond, with a maturity of 101 years, is the longest-term bond ever issued by the Republic of Peru and in the world.

In fact, its issuance showed investors' confidence in the sound economic policy of Peru.

"The November 2020 issuance, as well as other bond issuances by the Republic of Peru, have yielded satisfactory results, with competitive interest rates, which allows financing expenditures and projects to meet the needs of the population," Economy and Finance Minister Oscar Graham remarked.

"The excellent results of Peru's issuances reflect investors' confidence in the Peruvian economy, even in volatile political situations," he added.

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