Estudio Echecopar, member firm of Baker & McKenzie International, advised the Republic of Peru, as issuer, on the issuance and offering of global bonds for an aggregate of USD 3,000 million.
The total amount of the transaction was divided as follows: (i) USD 1,000 million in global bonds with maturity date on 2026 named "2.392 % U.S. Dollar-denominated Global Bonds due 2026", and (ii) USD 2,000 million in global bonds with maturity date on 2031 named "2.783 % U.S. Dollar-denominated Global Bonds due 2031", both pursuant to the debt securities prospectus of the Republic of Peru filed before the Securities and Exchange Commission (SEC) of the United States of America.
The Republic of Peru will use the proceeds from the sale of the securities to finance and pre-finance the financial needs of the Republic for 2020 and 2021, respectively.
Our partners Pablo Berckholtz, Alonso Miranda and Rolando Ramírez-Gastón together with our associate Adrián Tovar advised the Republic of Peru throughout the process.
This transaction is paramount, not only because of its substantial amount, but also because of the current world situation caused by the COVID-19 pandemic in which it was carried out, causing high volatility and uncertainty in the stock markets. However, the transaction was successful, as it has caused a demand of approximately USD 25,000 million on the part of the investors, obtaining historically low interest rates below the region's comparable rates. This reaffirms the confidence of the investors in the macroeconomic foundations and indicators of Peru and in its fiscal accounts, as well as in its responsiveness, strategy and plans implemented by the current administration to manage the ongoing crisis and accomplish the recovery of the Peruvian economy due to the negative impact caused by COVID-19.