After Bond Exodus, Foreigners Courted in Peru’s $6 Billion Swap
- Foreign investors cut Peru debt holdings to 5-year low in June
- Election of Kuczynski has revived demand for country’s notes
Peru's Kuczynski: We Have to Take Advantage of Rates Now
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For President Pedro Pablo Kuczynski to succeed in converting as much as $6 billion of Peru’s overseas bonds into local-currency debt, he’ll need to lure back the foreign investors who’ve fled the country in droves in recent years.
The Wall Street veteran who took office in July is asking Peru’s Congress to approve a plan that will include buying back or swapping notes denominated mostly in U.S. dollars, as well as some bonds in soles that mature in the next few years. The nation would aim to finance the deals, which would take place next year, by selling mostly local-currency debt.