Peru’s finance minister kicked off a “non-deal roadshow” to meet with institutional investors in the United States and United Kingdom to discuss the possibility of a new sovereign bond issue.
Peru’s finance minister, Alonso Segura, launched meetings with fixed-income investors in New York today to promote the benefits of Peruvian sovereign debt. In addition to New York, Segura and his team will also visit Los Angeles, Boston and London from March 16 through March 19.
“This is an opportunity to reiterate to big investors the notable position of the Peruvian economy, which despite external shocks continues on a path of sustained growth with solid macroeconomic and institutional fundamentals,” Segura said.
Segura will highlight the strengths of Peru’s economy, which include investment grade ratings from the Big Three credit rating agencies. In July of last year, Moody’s upgraded Peru to A3. The boost brought Peru’s average rating in line with Mexico for second best in Latin America behind Chile.
Segura is accompanied by Peru’s housing minister, Carlos Oliva, and treasury director, Carlos Lunares. The Peruvian government has hired BBVA, Deutsche Bank and Morgan Stanley to organize the meetings with investors.
In October, Peru issued $3 billion in bonds to extend maturity dates on its current debt.
The world’s third largest copper producer and sixth largest producer of gold, Peruvian economic growth has slowed due to a fall in global commodity prices despite government efforts to stimulate growth. GDP in 2014 grew 2.35%, the slowest rate since the 2008 financial crisis.
Sources:
Alonso Segura inicia reuniones en EE.UU. para promover fortalezas de la economía peruana (Gestion)
Alonso Segura inició road show para emisión de bonos soberanos (El Comercio)
Ministro Segura inicia hoy reuniones con inversionistas en Nueva York (Andina)
Peru kicks off roadshow for possible sovereign bond issue (Reuters)