LIMA, Feb 4 (Reuters) - Peru’s state-owned oil firm Petroperu said on Thursday that it issued $1 billion in bonds at a “historic low” interest rate of 4.65% in the international market to pay for completing the modernization of the company’s largest refinery.
Petroperu said the bond attracted approximate demand of $2.5 billion, which “which reflects the confidence of the market in the project” of modernizing the Talara refinery.
“The transaction was carried out through the reopening of the bond maturing in 2047 at an interest rate of 4.65%, which represents the minimum historical interest rate for Petroperu,” the company said in a letter to local regulators.
This is the second time that Petroperu has issued paper after placing bonds for some $2 billion in 2017, when it debuted in the international capital markets.
The company expects to complete the modernization of Talara, located on the Pacific coast of northern Peru, in 2021 with a total estimated investment of $4.7 billion. (Reporting by Marco Aquino, writing by Hugh Bronstein; Editing by David Gregorio)