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Economy | 26 March, 2009 [ 08:01 ]

Peru Sells 10-Year Dollar Bonds Amid Market Rally


Bloomberg
Andrea Jaramillo and Bryan Keogh

Peru sold $1 billion of 10-year bonds in its first international offering in two years as it seeks to take advantage of a rally in emerging-market debt.

Emerging-market bonds have rallied since March 6 amid signs the U.S. economy is stabilizing and as the Federal Reserve started today to buy Treasuries for the first time since the 1960s in a bid to keep consumer borrowing costs low.

The government sold the bonds to yield 4.375 percentage points above U.S. Treasuries of similar maturity.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. managed the sale, which is the country’s first in international markets since Standard & Poor’s and Fitch Ratings last year gave its foreign debt an investment-grade rating of BBB.

Peru plans to sell as much as $2 billion dollars in foreign bonds this year, the government said in El Peruano state gazette yesterday. The government will seek to buy back its global bonds due 2014, according to the statement.

(Bloomberg)

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