Successful issuance of USD 1,000 million by PETROPERU at a historical minimum rate for the completion of the Talara Refinery

PETROPERÚ successfully completed the placement of USD 1 billion in the international capital markets, an amount that will allow the completion of the construction works of the Talara Refinery during 2021, which to date have an advance of more than 93%.

The transaction was carried out through the reopening of the bond maturing in 2047 at an interest rate of 4.65% (bond that had been issued for the first time in 2017 at an interest rate of 5.62%), which represents the historical minimum interest rate for PETROPERU and for a Peruvian corporate at the same maturity term.

The transaction was very well received by the international and regional investor base, achieving a demand of approximately USD 2,500 million, which reflects the market's confidence in the project, its benefits and in the management of the first company in the country.

“This successful transaction reaffirms the confidence of the international financial community in PETROPERU and, without a doubt, contributes to the strengthening of the company's corporate governance, it will also allow us to conclude with the construction of the new Talara Refinery that will begin its start-up in November of this year”, highlighted Eduardo Guevara Dodds, Chairman of the Board.

As reported at the time, PETROPERU was evaluating the best option for the financial closure of the PMRT, having received from the Ministry of Economy and Finance the authorization to arrange an external debt operation without the guarantee of the National Government, under the modality bond issue.

Prior to the transaction, PETROPERU's Senior Management met with global investors from the main financial centers of Latin America, Europe and the United States, finally receiving orders from prestigious institutions such as Blackrock, PIMCO, Marathon, Wellington, etc.

It is important to specify that the financing payment for the Talara Refinery is assumed by PETROPERU with its own resources, as a result of its participation in the hydrocarbon market and its projects. It should be noted that the company will increase its profitability with the start-up of this important refinery complex, one of the most modern in South America, as well as its upcoming re-entry into the hydrocarbon exploration and production business.

Talara Refinery

The construction of the new Talara Refinery is the most important energy project in the country, since when it starts operations it will allow reducing sulfur in fuels to 50 parts per million and in the short term to 10 parts per million to improve air quality and hence the health of all Peruvians; as well as, it will increase the fuel production capacity from 65 to 95 thousand barrels per day. This refinery was declared of public necessity and national interest with Law 30130.