On Monday, Peru placed its first century bond

3.23% 28jul2121 bond of $1bn was placed on Monday. The issue took place in unstable times for the South American country. Just recently, Martín Vizcarra was impeached by congress. His place was taken by Manuel Merino, the head of the congress. Still, he couldn't keep his post and was forced to step aside after 5 days by huge street protests. Francisco Sagasti, a 76-year-old former World Bank official, has become the third president in the last days. He is supposed to guide the country through to new elections that will take place in the second quarter of 2021.  Despite political instability, analysts believe the country is strong. Shamaila Khan, head of emerging market debt strategies at AllianceBernstein: “We think that Peru is a solid investment-grade credit despite the political volatility. The country has a strong external position and a low level of indebtedness.” The sovereign priced the 100-year bond at 1.70 percentage points above US Treasuries.  Additionally, the sovereign placed a 12-year bond and a 40-year note.

• Status
  outstanding
• Country of risk
  Peru
• Redemption (put/call option)
  *** (***)
• Amount
  1,000,000,000 USD
• М/S&P/F
  — / — / —

• Full name
  Republic of Peru
• Registration country
  Peru