Peru

Peru's largest commercial lender Banco de Crédito del Perú (BCP) will begin fixed income investor calls on Monday as it contemplates a tier two capital bond issue, just two weeks after parent company Credicorp issued a debut $500m senior deal.

Nexa Resources, the mining arm of Brazilian conglomerate Votorantim, overcame a soft start to the week in international markets to raise $500m on Monday, with investors saying the company had offered a generous pick-up to its existing notes.

Peru’s largest financial group, Credicorp, tapped international bond markets for $500m on Wednesday, becoming the first debut issuer from Latin America since the Covid-19 crisis began.

Peru’s largest financial group Credicorp tapped international bond markets for $500m on Wednesday, maintaining a robust order book even as it tightened pricing by more than 50bp.

Bond buyers are showing interest in Peru’s nuevo sol denominated paper amid a sharp increase in EM risk appetite, according to the government’s public treasury director, even as Fitch downgraded the sovereign’s local currency debt rating last week.

The International Monetary Fund (IMF) looks likely to provide Peru with a flexible credit line of around $11bn as the South American country works to preserve it liquidity position.

The Republic of Peru has approved a further $4bn of debt issuance to finance coronavirus spending just two weeks after tapping bond markets for $3bn.

Bond markets handsomely rewarded Peru on Thursday for leading the way in Latin America on economic policy reaction to the Covid-19 crisis, notching its lowest ever dollar funding costs. As Peru’s public treasury director said the deal was to increase already substantial liquidity buffers, Lat Am bankers were left hoping the result would encourage more reluctant issuers.

Emerging market bonds are trying to catch the same bid that has gripped investment grade markets, particularly in the US. Now, Latin America borrowers are scavenging once more for chances to print new issues.

Nexa Resources Perú, the mining company previously known as Compañía Minera Milpo, will buy back more than half of a dollar bond maturing in 2023 as it’s set to wrap a tender offer.

Peruvian fresh food exporter Camposol tightened pricing on its new bond by well over 50bp from initial price thoughts on Tuesday as bankers said the price discovery exercise had exceeded expectations.

Peruvian food producer Camposol is lining up a new bond with credit ratings improved after a corporate reorganisation. Camposol is hoping to have better luck with market conditions after suffering cruel timing on two previous attempts to print bonds back in 2018.