Simpson Thacher advised the Republic of Peru on a tender offer and simultaneous issue of approximately $3.1 billion in sovereign bonds.
The transaction, considered the largest local currency transaction in Peruvian history, consisted of the issuance and sale of 10.3 billion Peruvian soles ($3.1 billion) aggregate principal amount of soles-denominated 6.350% Bonos Soberanos due 2028 (the “New Bonds”), of which 5.2 billion soles ($1.77 billion) was initially purchased by BBVA Banco Continental and resold as global depositary notes (GDNs) to BBVA Securities, BofA Merrill Lynch and HSBC, for resale in reliance on Rule 144A and Regulation S.
It also covered an offer to holders of four separate series of soles-denominated Bonos Soberanos (including in the form of GDNs) and four separate series of US dollar-denominated Global Bonds outstanding, to tender their securities for either New Bonds in a “preferred” tender or for cash at various prices for each series outstanding.
The tender and new issue of Bonos Soberanos closed simultaneously as part of a liability management transaction approved by the government of the Republic of Peru and managed by the Ministry of Economy (MEF).
Partner Jaime Mercado led the Simpson Thacher team advising Peru.