Peru

Peru’s return to dollar bond markets after four years on Thursday saw it clinch its lowest ever yield and price flat to or even inside its better rated neighbour Chile. Yet so sought after is Peru’s hard currency paper that the government is having a tough time persuading bondholders to let go.

Peru returned to bond markets on Thursday with a dual currency deal that included a rare dollar issue that some on the deal reckoned had been priced the country’s better rated peer, Chile.

Peru will meet fixed income investors in the US on Tuesday and Wednesday as the new second best rated sovereign in Latin America prepares a dual currency bond offering that would include its first visit to dollar markets since 2015.

Peruvian power transmission company Transmantaro beat pricing expectations on Thursday, as it clinched a $400m green bond that hit the sweet spot for duration, provenance and credit quality.

International bond investors have admitted to being impressed at the market’s capacity to absorb local currency paper after Peruvian conglomerate Alicorp sold the second global sol bond in the space of a week.

Conglomerate Alicorp sold the second global nuevo sol bond to emerge from Peru in a week on Wednesday, copying the execution pattern that worked well for Telefónica del Perú last week and pricing inside its lower-rated compatriot.

A varied menu of at least three Latin American borrowers could try to issue bonds on Wednesday, as the region’s issuance continues to catch up with last year’s numbers.

Consorcio Transmantaro, the Peruvian power transmission company, could be the next Latin American corporate to tap dollar markets after mandating for a green bond that Moody’s says is not quite fully green.

No sooner had the dust settled on the first global nuevo sol bond sale from a non-financial corporate in 14 years than a second Peruvian company announced its plans to do the same, leaving DCM bankers curious to discover the depth of the local currency market.

International investors bought around half of Telefónica del Perú’s sol bond on Wednesday, as an attractive spread over the sovereign curve helped the telecoms company attract impressive size in a rare Latin American global local currency deal.

Consorcio Transmantaro, the Peruvian power transmission company, is preparing a $400m green bond, according to rating agencies, though Moody’s says it expects less than 95% of proceeds to be used for qualifying green uses.

The Peruvian subsidiary of Spanish group Telefónica will begin investor meetings on Thursday as it plans what would be the first ever global nuevo sol deal from a non-financial Peruvian corporate.