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Peru's Strategic Bond Exchange Announcement

The Republic of Peru has taken a significant step in its financial management by initiating a bond exchange offer, which was announced on November 9, 2026. This offer allows holders of specific dollar-denominated bonds to exchange them for newly issued bonds that are set to mature in 2038. The initiative is part of Peru's broader strategy to enhance its financial stability and adapt to evolving market conditions.

Details of the Bond Exchange

The exchange program targets several series of Peru's outstanding bonds, collectively referred to as the "Eligible Bonds." These bonds include:

• - 4.125% USD-Denominated Global Bonds due 2027: Outstanding principal amount of $449,023,000.
• - 2.844% USD-Denominated Global Bonds due 2030: Outstanding principal amount of $465,675,000.
• - 2.783% USD-Denominated Global Bonds due 2031: Outstanding principal amount of $2,799,396,000.

For each validly tendered bond, Peru will provide an exchange consideration, which is set to be revealed shortly after the pricing of the new bonds. In addition, participants in the exchange will receive accrued interest on their eligible bonds, ensuring a fair transaction for current bondholders.

Exchange Mechanics and Deadline

The bond exchange offers, as specified in the prospectus supplement from November 9, will commence the same day and will be open until 5:00 PM (New York City time) on November 17, 2026, unless Peru decides to extend or terminate the offer early. Importantly, participation is not dependent on a minimum threshold of bond tenders per series, providing flexibility to investors.

Eligible bondholders looking to participate must be direct participants in the necessary clearing systems, such as the Depository Trust Company (DTC), Euroclear Bank, or Clearstream Banking. Each tender must be submitted while adhering to the stipulated deadlines of these clearing systems.

Legal Implications and Market Precautions

Peru's bond exchange initiative is confined to jurisdictions where it is legally permissible, and any unauthorized attempts at participation will be declared void. The Republic has filed registration statements with the Securities and Exchange Commission (SEC), ensuring compliance with U.S. regulations. Investors are urged to review these materials and understand their rights and obligations regarding these offers.

Conclusion

This strategic bond exchange strategy highlights Peru's commitment to maintaining financial health and responding effectively to the global financial environment. The issuance of new bonds not only facilitates financial restructuring but also reinforces investor confidence in Peru's economic trajectory as it prepares for future growth.

Investors with valid claims to the eligible bonds are encouraged to seek detailed advice before proceeding with the tender process, taking into account potential market risks and rewards. Peru's initiative marks an important chapter in its ongoing efforts to stabilize and enhance its fiscal landscape.