UPDATE 2-Peru investor meetings leave market hanging

jueves 23 de octubre de 2014 17:09 GYT

(Adds market reaction, debt official quotes, background)

By Davide Scigliuzzo

NEW YORK, Oct 23 (IFR) - Peru's announcement of a fresh round of investor meetings has set off speculation that the sovereign may be plotting a return to the international capital markets after a two-year absence.

The country, rated A3/BBB+/BBB+, has hired Bank of America Merrill Lynch, BBVA and Morgan Stanley to arrange meetings in the US and Europe, according to sources close to the situation.

While one source stressed the roadshow is not related to a new bond issue, market participants said several options could be on the table.

"It could be just informational or it could be a new deal or some kind of liability management," said one US-based investor scheduled to meet with the sovereign.

Peru has shied away from dollar transactions over the last couple of years, as it focuses on the development of local capital markets through domestic issues in soles.

"We have been consistent in what we have defined as one of our main goals, in terms of de-dollarizing our debt portfolio up to a certain level," Carlos Linares Penaloza, Peru's general director for public debt and treasury, said this month.

"Of course this doesn't limit us if we see the need or the opportunity to go to the international market," he said. "We are going to be open."   Continuación...