Republic of Peru’s Bonos Soberanos Tender Offering And Global Bonds Offering

Simpson Thacher represented the Republic of Peru on the deal.

Republic of Peru completed a cash tender offer to holders of its outstanding 5.2% Bonos Soberanosdue 2023, including Bonos Soberanos in the form of Global Depositary Notes or GDNs, and 2.75% Euro-Denominated Global Bonds due 2026, 3.75% Euro -Denominated Global Bonds due 2030, 7.35% U.S. Dollar-Denominated Global Bonds due 2025, 4.125% U.S. Dollar-Denominated Global Bonds due 2027, 8.75% U.S. Dollar-Denominated Global Bonds due 2033 and 6.55% U.S. Dollar-Denominated Global Bonds due 2037.

The transaction included two new issuances of securities, namely: S/5.8275 billion (equivalent to approximately US$1.8 billion) aggregate principal amount of the Republic’s Sol-Denominated 5.4% Bonos Soberanos due 2034 (including in the form of GDNs issued by Citibank N.A.), initially purchased by Scotiabank Perú S.A.A. and simultaneously resold in part to HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Santander Investment Securities Inc., and Scotia Capital (USA) Inc. and US$750 million aggregate principal amount of the Republic’s 2.844% Dollar-Denominated Global Bonds due 2030, issued from the Republic’s SEC-registered shelf, for which HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Santander Investment Securities Inc., and Scotia Capital (USA) Inc. acted as underwriters.

The liability management transaction was approved by the government of the Republic of Peru and managed by the Ministry of Economy and Finance (MEF).

The Simpson Thacher team for the transaction included Jaime Mercado (Picture), Karen McClendon and Miluska Gutierrez (Capital Markets); and Jonathan Cantor and Brian Mendick (Tax).

Involved fees earner: Jonathan Cantor – Simpson Thacher & Bartlett; Miluska Gutierrez Vega – Simpson Thacher & Bartlett; Karen McClendon – Simpson Thacher & Bartlett; Brian Mendick – Simpson Thacher & Bartlett; Jaime Mercado – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Republic of Peru;

Author: Ambrogio Visconti