Shearman And Sterling

News November 02, 2021

Peru’s $4 Billion Global Bonds Issuance

Shearman & Sterling advised the underwriters, BNP Paribas Securities, BofA Securities, J.P. Morgan Securities and Morgan Stanley, in connection with the issuance of the Republic of Peru’s U.S. Dollar-Denominated 3.000 percent Global Bonds due 2034, 3.550 percent Global Bonds due 2051 and 3.600 percent Global Bonds due 2072, in an aggregate principal amount among the three series of $4.0 billion.

The Republic of Peru intends to use the net proceeds from this offering to finance general budgetary requirements for fiscal year 2021 and to pre-finance general budgetary requirements for fiscal year 2022. It is Peru’s intention to invest an amount equal to the proceeds from the sale of the 2034 bonds and the 2072 bonds in expenditures that may qualify as “eligible green and social categories”. Eligible green expenditures may be in one or more of the following eight categories: green buildings, renewable energy, energy efficiency, low carbon transport, efficient and resilient water and wastewater management, sustainable management of natural resources, land use and marine protected areas, sustainable agriculture and sustainable waste management; while eligible social expenditures may be in one or more of the following three categories: support for vulnerable groups and people in vulnerable situations, as defined by the Household Targeting System (Sistema de Focalización de Hogares, “SISFOH”); access to affordable housing, education and essential health services; and support for Micro-, Small- and Medium-sized Enterprises (MSMEs) and social programs to alleviate and/or prevent unemployment.

The Shearman & Sterling team below included visiting attorney Elias Zaga Belzer (New York-Project Development and Finance) and international associate Ana Goncalves (New York-Capital Markets).

The Team