NEW YORK, Sept 29 (IFR) - Peru has upsized a 12-year local
currency bond after deciding to accept more cash tenders on its
latest liability management trade, a banker on the deal told IFR
The country will now issue approximately S1.6bn (US$474.2m)
of new 6.35% 12-years, increasing the amount from 806.826m,
after pricing the deal on Wednesday at 99.851 to yield 6.375% on
the back of a S11bn-plus order book.
The bond sale is part of an exchange and tender for roughly
US$13bn-equivalent of securities, as Peru looks to reduce its
dollar debt and please the rating agencies.
Holders are being offered the chance to sell back their
existing bonds for cash or switch into the new security.
The borrower is targeting sol-denominated sovereign bonds
maturing in 2017, 2020, 2023 and 2026, as well as dollar bonds
maturing in 2019, 2025, 2033 and 2037.
Purchase prices on the tender were set at 104.50, 116.50,
101.20, 118.15, 115.30, 139.15, 161.10 and 140.30.
Any money raised from the new 12-year will fund the tender,
making it a "cash-neutral" transaction, the banker said.
The size of the new security will grow further once the
exchange portion of the transaction is completed.
BBVA, Bank of America Merrill Lynch and HSBC are leads on
the transaction. Peru's local currency ratings are A3/A-/A-.
(Reporting by Paul Kilby; Editing by Marc Carnegie)