The Firm recently represented the Republic of Peru in connection with a (x) switch tender offer to holders of its outstanding (i) 5.2% Bonos Soberanos due 2023 and 5.7% Bonos Soberanos due 2024, including in both cases Bonos Soberanos in the form of Global Depositary Notes or GDNs, and (ii) 7.35% U.S. Dollar-Denominated Global Bonds due 2025 and 4.125% U.S. Dollar-Denominated Global Bonds due 2027; and (y) stand-alone cash tender offer to holders of its outstanding 7.84% Bonos Soberanos due 2020, including Bonos Soberanos in the form of GDNs.
The transaction included two new issuances of securities, namely: (x) S/8,260,720,000 (equivalent to approximately US$2.4 billion) aggregate principal amount of the Republic’s Sol-Denominated 5.35% Bonos Soberanos due 2040 (including in the form of GDNs issued by Citibank, N.A.), and (y) S/1,842,164,000 (equivalent to approximately US$540 million) aggregate principal amount of the Republic’s Sol-Denominated 5.4% Bonos Soberanos due 2034 (including in the form of GDNs issued by Citibank, N.A.), which represent a further issuance of the Republic’s 5.4% Bonos Soberanos due 2034. The new securities were initially purchased by Citibank del Perú S.A. and simultaneously resold in part to BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities plc.
The liability management transactions were approved by the government of the Republic of Peru and managed by the Ministry of Economy and Finance (MEF).
The Simpson Thacher team for the transaction included Jaime Mercado, Karen McClendon, María Justina Richards and Raúl Vizcarra (Capital Markets); Jonathan Cantor and Brian Mendick (Tax) and Deborah Harris (Corporate).