Peru launches 3.25bn soles 10-year bond at 5.75% yield
By Davide Scigliuzzo
NEW YORK, Oct 30 (IFR) - The Republic of Peru has launched a 3.25bn soles (US$1.1bn) 10-year bond at the final yield of 5.75%, according to market sources.
Final terms on the issue came inside initial price thoughts of 6% area and price guidance of 5.875% area set earlier on Thursday.
Peru will use proceeds from the new issue to buy back some of its local and global bonds with maturities ranging from 2015 to 2020, as well as for general purposes.
The deal, which settles in US dollars, was brought to market alongside a US$500m re-opening of the sovereign's 2050 notes, which priced earlier today at a cash price of 112.208 to yield 4.9%, or a spread of 185bp over US Treasuries.
BBVA, Bank of America Merrill Lynch and Morgan Stanley are the bookrunners on both transactions. (Reporting by Davide Scigliuzzo; Editing by Marc Carnegie)
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