Peru will auction a total of 80 million soles ($23 million) in sovereign domestic bonds next week under its market makers program to promote local capital markets and raise cash to plug the fiscal deficit.
The Economy Ministry gave the following details of the auctions.
On July 12, it will auction 40 million soles in 15-year paper which falls due on July 13, 2019.
It is issued according to the so-called constant acquisitive value index fixed by the central bank every month and will have a nominal annual interest rate which was not specified.
On July 13, it will conduct two auctions simultaneously, one for three-year paper due October 9, 2007 and the other for four-year paper due October 9, 2008.
It will auction 20 million soles of each.
The three-year bond has a 5.94 percent nominal annual fixed coupon rate, based on a 360-day year, with a six-monthly coupon of 29.7 soles per bond.
The four-year bond has a 9.47 percent nominal annual fixed coupon rate, based on a 360-day year, and a six-monthly coupon of 47.35 soles per bond.