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Peru's Pacasmayo sells US$170mn in bonds

Bnamericas Published: Friday, February 01, 2019
Peru's Pacasmayo sells US$170mn in bonds

Peruvian cement producer Cementos Pacasmayo sold 570mn soles (US$170mn) in corporate bonds, the largest corporate debt offering on the local market in over two years.

Pacasmayo sold 260mn soles in 2029 bonds at an interest rate of 6.687% and 310mn soles in 2034 bonds at 6.84%, said Credicorp Capital, which structured the bond sale.

The sale will enable Pacasmayo to refinance a bank loan which financed the December 7 buyback of US$168mn in outstanding dollar-denominated bonds, the unit of Banco de Crédito del Perú (BCP) said in a statement.

The bond sale, which sparked demand for 1.2bn soles from institutional investors, also underscores the cement producer's strategy to shift corporate debt from dollars to local currency and push back due dates, according to Credicorp.

It marked the biggest bond sale on the Peruvian market since local gasoline station chain Primax sold 640mn soles in October 2016.

"This offering demonstrates a solid appetite among investors for credit quality and large debt offerings, demonstrating the depth of the local market," Credicorp said in the statement.

Pacasmayo posted a 33.4mn-sol (US$10mn) profit in the third quarter compared with a 38.6mn-sol profit a year earlier as sales fell 4.4% to 319mn soles from 334mn soles. The company is scheduled to report full-year 2018 earnings on February 11.

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