Leading global law firm Baker McKenzie announced today that the New York office represented The Republic of Peru (the Republic) in both a Peruvian Soles-Denominated Sovereign Bond Offering and a Registered US Dollar-Denominated Bond Offering (both offerings totaling approximately USD 5.8 billion) and a related liability management transaction for several series of outstanding bonds.
The Soles-Denominated Sovereign Bond offering involved the issuance of S/10,000,000,000 (approximately USD 2.8 billion) of 6.850% Sol-Denominated Bonos Soberanos due 2035 (the Sovereign Bonds). S/1,205,456,000 (approximately USD 334 million) of the Sovereign Bonds were delivered in the form of Global Depositary Notes.
Concurrently with offering of Sovereign Bonds, the Republic conducted a liability management transaction in which it offered holders of four series of existing sovereign bonds the opportunity to exchange their existing bonds for the newly issued Sovereign Bonds or to tender their existing bonds for cash. The aggregate principal amount of sovereign bonds validly tendered and accepted in the exchange offers was approximately S/9.4 billion (approximately USD 2.6 billion) and the aggregate principal amount of sovereign bonds validly tendered and accepted in the cash tender offers was approximately S/2.8 billion (approximately USD 770 million). Due to significant interest in the exchange offer and cash tender offer, the actual amount of existing sovereign bonds validly tendered was subject to proration by the Republic, as a result of the tenders exceeding the maximum exchange amount and maximum purchase amount determined by the Republic.
Shortly following the conclusion of the offering of Sovereign Bonds, the Republic issued USD 1.6 billion of 5.500% US Dollar-Denominated Global Bonds Due 2036 and USD 1.4 billion of 6.200% U.S. Dollar-Denominated Global Bonds Due 2036 (the “US Dollar-Denominated Bonds”), each of which were registered with the US Securities and Exchange Commission.
Concurrently with offering of US Dollar-Denominated Bonds, the Republic conducted a liability management transaction in which it offered (i) holders of five series of existing US dollar-denominated bonds the opportunity to exchange their existing U.S. dollar-denominated bonds for the newly issued US Dollar-Denominated Bonds or to tender their existing US dollar-denominated bonds for cash and (ii) holders of two series of existing Euro-denominated bonds the opportunity to tender their existing Euro-denominated bonds for cash. The aggregate principal amount of outstanding US dollar-denominated bonds validly tendered and accepted in the exchange offers was approximately USD 516.7 million and the aggregate principal amount of outstanding US dollar-denominated bonds validly tendered and accepted in the cash tender offers was approximately USD 433.9 million. The aggregate principal amount of outstanding Euro-denominated bonds validly tendered and accepted in the cash tender offers was approximately EUR 229.8 million.
The transactions represent an important step in the Republic extending its debt maturity profile. BNP Paribas, Citigroup, HSBC and Santander acted as the underwriters and dealer managers.
Transactional Practice Group partners Mike Fitzgerald, Arturo Carrillo, Joy Gallup and Steven Sandretto led the Baker McKenzie team, which also included associates Alejandra Cuadra and Diego Aznar and Tax partners Thomas May and Kia Waxman.
Other law firms participating in this transaction included Davis Polk & Wardwell LLP (as counsel to the underwriters and dealer managers), J&A Garrigues Perú S. Civil de R. L. (as Peruvian counsel to the Republic) and Estudio Rubio, Leguía, Normand y Asociados S. Civil de R. L. (as Peruvian counsel to the underwriters and dealer managers).
The Soles-Denominated Sovereign Bond offering involved the issuance of S/10,000,000,000 (approximately USD 2.8 billion) of 6.850% Sol-Denominated Bonos Soberanos due 2035 (the Sovereign Bonds). S/1,205,456,000 (approximately USD 334 million) of the Sovereign Bonds were delivered in the form of Global Depositary Notes.
Concurrently with offering of Sovereign Bonds, the Republic conducted a liability management transaction in which it offered holders of four series of existing sovereign bonds the opportunity to exchange their existing bonds for the newly issued Sovereign Bonds or to tender their existing bonds for cash. The aggregate principal amount of sovereign bonds validly tendered and accepted in the exchange offers was approximately S/9.4 billion (approximately USD 2.6 billion) and the aggregate principal amount of sovereign bonds validly tendered and accepted in the cash tender offers was approximately S/2.8 billion (approximately USD 770 million). Due to significant interest in the exchange offer and cash tender offer, the actual amount of existing sovereign bonds validly tendered was subject to proration by the Republic, as a result of the tenders exceeding the maximum exchange amount and maximum purchase amount determined by the Republic.
Shortly following the conclusion of the offering of Sovereign Bonds, the Republic issued USD 1.6 billion of 5.500% US Dollar-Denominated Global Bonds Due 2036 and USD 1.4 billion of 6.200% U.S. Dollar-Denominated Global Bonds Due 2036 (the “US Dollar-Denominated Bonds”), each of which were registered with the US Securities and Exchange Commission.
Concurrently with offering of US Dollar-Denominated Bonds, the Republic conducted a liability management transaction in which it offered (i) holders of five series of existing US dollar-denominated bonds the opportunity to exchange their existing U.S. dollar-denominated bonds for the newly issued US Dollar-Denominated Bonds or to tender their existing US dollar-denominated bonds for cash and (ii) holders of two series of existing Euro-denominated bonds the opportunity to tender their existing Euro-denominated bonds for cash. The aggregate principal amount of outstanding US dollar-denominated bonds validly tendered and accepted in the exchange offers was approximately USD 516.7 million and the aggregate principal amount of outstanding US dollar-denominated bonds validly tendered and accepted in the cash tender offers was approximately USD 433.9 million. The aggregate principal amount of outstanding Euro-denominated bonds validly tendered and accepted in the cash tender offers was approximately EUR 229.8 million.
The transactions represent an important step in the Republic extending its debt maturity profile. BNP Paribas, Citigroup, HSBC and Santander acted as the underwriters and dealer managers.
Transactional Practice Group partners Mike Fitzgerald, Arturo Carrillo, Joy Gallup and Steven Sandretto led the Baker McKenzie team, which also included associates Alejandra Cuadra and Diego Aznar and Tax partners Thomas May and Kia Waxman.
Other law firms participating in this transaction included Davis Polk & Wardwell LLP (as counsel to the underwriters and dealer managers), J&A Garrigues Perú S. Civil de R. L. (as Peruvian counsel to the Republic) and Estudio Rubio, Leguía, Normand y Asociados S. Civil de R. L. (as Peruvian counsel to the underwriters and dealer managers).
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