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Peru's Sovereign Bond Exchange Announcement

On June 5, 2025, the Republic of Peru revealed an important financial initiative concerning its sovereign bonds. This announcement marks the commencement of offers to exchange existing sovereign bonds, also known as bonos soberanos, for a new series of bonds that will mature in 2035.

What Bonds are Being Exchanged?

The exchange involves multiple series of Peru's outstanding sovereign bonds, including Global Depositary Notes (GDNs) managed by Citibank, N.A. These Existing Bonds set the stage for new investment opportunities through the issuance of new Sol-Denominated sovereign bonds.

Among the bonds being offered are:

• - 8.200% Bonos Soberanos due 2026
• - 6.350% Bonos Soberanos due 2028
• - 5.940% Bonos Soberanos due 2029
• - 6.950% Bonos Soberanos due 2031

The newly issued sovereign bonds will carry a coupon rate of 6.850%, making them an attractive consideration for current bondholders.

Exchange and Cash Offers

The announcement also covers the provision for cash purchases of the existing bonds. Peru is offering significant Exchange Consideration for each S/1,000 principal amount of Existing Bonds in these Exchange Offers. For instance:

• - 8.200% Bonos Soberanos due 2026: Purchase Price is S/1,047.992 with an Exchange Consideration of S/1,050.985.

Peru has reserved the right to modify any terms associated with these offers and can choose not to accept all tendered bonds at their discretion. This flexibility reflects Peru's strategic management of its sovereign debt.

Legal and Regulatory Aspects

Importantly, these new bonds will not be registered under the U.S. Securities Act of 1933 or any state securities laws. Offers are strictly directed to holders who certify as qualified institutional buyers or non-U.S. persons in offshore transactions. This legal framework ensures compliance with financial regulations while facilitating inclusivity for international investors.

Peru emphasizes that these offerings are only valid in jurisdictions where such offers are legal. Interested investors are encouraged to review the specific terms outlined in the Exchange and Tender Offering Memorandum, dated June 5, 2025, ensuring they understand the conditions and potential risks involved.

How to Participate

For those eligible to participate in this exchange, a prerequisite is to complete and submit the Eligibility Certification. Holders can obtain this certification through Global Bondholder Services Corporation, the designated Tender, and Exchange Agent. Additionally, Banco Santander Perú S.A. serves as the Peruvian market maker, aiding in the transaction process.

Peru's latest endeavor is not merely a financial maneuver; it reinforces the country’s commitment to maintaining its credit standing and investor confidence in its sovereign debt instruments. Through this bond exchange, investors have a unique opportunity to reinvest in a debt product with promising yields while supporting Peru's economic resilience.

In summary, this announcement represents a pivotal moment for Peru as it actively manages its fiscal health, making strategic moves towards enhancing its sovereign bond portfolio. The favorable terms associated with the new bonds due in 2035 present a compelling case for both existing and prospective investors.