Baker McKenzie Advised Republic Of Peru On USD 5.8 Billion Bond Issuance And Liability Management
Baker McKenzie advised Republic of Peru on USD 5.8 billion bond issuance and liability management
Baker McKenzie advised the Republic of Peru on a landmark capital markets transaction involving the issuance of approximately USD 5.8 billion in new sovereign bonds and a series of related exchange and cash tender offers for multiple series of outstanding bonds.
The transaction included:
- • A Soles-Denominated Sovereign Bond Offering: S/10,000,000,000 (approx. USD 2.8 billion) of 6.850% Bonos Soberanos due 2035, with S/1,205,456,000 (approx. USD 334 million) delivered in the form of Global Depositary Notes
- • A US Dollar-Denominated Bond Offering: USD 1.6 billion of 5.500% Global Bonds due 2036 and USD 1.4 billion of 6.200% Global Bonds due 2036, each registered with the US SEC
- Exchange Offers and Cash Tender Offers:
- • Holders of existing sovereign bonds and US dollar-denominated bonds were offered the option to exchange for the newly issued bonds or tender for cash
- • Holders of Euro-denominated bonds were offered a cash tender option
The aggregate principal amounts accepted included:
- • S/9.4 billion (approx. USD 2.6 billion) of sovereign bonds exchanged
- • S/2.8 billion (approx. USD 770 million) of sovereign bonds accepted in cash tenders
- • USD 516.7 million of US dollar-denominated bonds exchanged
- • USD 433.9 million of US dollar-denominated bonds and EUR 229.8 million of Euro-denominated bonds accepted in cash tenders
This comprehensive transaction helps the Republic extend its debt maturity profile. BNP Paribas, Citigroup, HSBC, and Santander acted as underwriters and dealer managers.
The Baker McKenzie team was led by Mike Fitzgerald (Partner), Arturo Carrillo (Partner), Joy Gallup (Partner), and Steven Sandretto (Partner), supported by Alejandra Cuadra (Associate), Diego Aznar (Associate), and Tax partners Thomas May and Kia Waxman.
Other law firms involved included Davis Polk & Wardwell LLP (counsel to underwriters and dealer managers), J&A Garrigues Perú S. Civil de R. L. (Peruvian counsel to the Republic) and Estudio Rubio, Leguía, Normand y Asociados S. Civil de R. L. (Peruvian counsel to the underwriters and dealer managers).
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