(Bloomberg) -- Peru returned to international markets with the first hard-currency bond sale in three years, raising $3 billion of debt in a two-tranche transaction.
The South American nation sold $1.25 billion of dollar notes maturing in 2035 and $1.75 billion worth of bonds due in 2054 at a spread of 140 basis points and 165 basis points, respectively, over similar US Treasuries, according to people familiar with the matter.
That’s tighter than initial price talks, said the people, who asked not to be identified because they’re not authorized to speak about it.
The bookrunners for the sale are Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Santander.
Peru, which has a track record of keeping its debt at relatively low levels, recently revised its 2024 deficit ceiling to 2.8% of gross domestic product from 2.0% previously. It’s also been grappling with lingering political instability.
“At current spread levels we feel that we are not very well compensated for the volatile political situation in the country,” said Philip Fielding, co-head of emerging markets at MacKay Shields LLC.
Peru’s global bonds have handed investors losses of 0.2% this year, lagging an index of emerging-market government debt. Its notes edged lower across the curve on Thursday.
Earlier this year, the country announced an offer to exchange or buy back some securities. The investment-grade nation has issued international, local-currency denominated notes earlier this year and in 2023, but last sold hard-currency debt in late 2021, according to data compiled by Bloomberg.
--With assistance from Carolina Wilson, Michael Gambale, Maria Elena Vizcaino, Giovanna Bellotti Azevedo and Marcelo Rochabrun.
(Updates with deal pricing in second paragraph and bond move in seventh.)
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