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

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

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

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

The distribution by type of investors was 66% Asset Managers, 12% insurance companies, 7% banks, 4% Pension Funds and 9% “among others”.

This bonus is associated with spending attention linked to the support of vulnerable groups and people in situations of vulnerability, access to housing, education and essential health services, as well as support for SMEs and social programs to alleviate and / or prevent unemployment .

The MEF remarked that the issue in euros represents one of the financing options and access to different markets that Peru has “taking advantage of the windows of opportunity that are presented” and contributes “to diversifying its investor base, optimizing the debt profile. public and cover financing needs at a competitive and reasonable cost. “

He added that the issuance of global bonds in dollars and euros implemented in recent days by Peru is part of the same debt operation and “once again demonstrates the appetite of investors for Peruvian public debt instruments.”

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He considered that, in addition, 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 consistent with the prudent management of public finances and is part of the financing strategy adopted by the Peruvian government that is being implemented, which contains as part of the proposed challenges the implementation of the issuance of sustainable bonds,” he concluded .

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