Luz del Sur raises 1.38B soles in Peru's first international corporate bond in soles
What's the deal? Luz del Sur, a leading Peruvian electricity company, has issued its first international corporate bond denominated in soles, raising 1.38 billion soles (roughly $380M). The bond closed at a yield of 6.75% and was oversubscribed 1.6 times, with total demand hitting 2.2 billion soles.
Separately, the company secured a $100M green loan from Banco de Crédito del Perú (BCP) to finance the acquisition of two wind farms — Marcona and Tres Hermanas.
Why now? General manager Mario Gonzales said the issuance supports Luz del Sur's long-term financial strategy by locking in a favourable cost of debt and shielding it from market volatility. The company holds AAA credit ratings locally and BBB+ internationally, which helped drive strong investor appetite.
What could go wrong? Issuing in soles exposes international bondholders to currency risk if the Peruvian sol weakens against the dollar. Peru's regulatory and political environment, while currently stable for the electricity sector, could shift — affecting returns for both bondholders and shareholders.
The signal: Peru's first international corporate bond denominated in soles, oversubscribed 1.6 times, suggests growing appetite among global investors for local-currency exposure to Latin American utilities — a space traditionally dominated by dollar-denominated issuances. The involvement of Banco de Crédito del Perú, a corporate investor, in providing the $100M green loan underscores how regional financial institutions are positioning themselves as key enablers of the renewables transition, bundling green financing alongside conventional capital markets activity.
Read more: ainvest.com
