For the first time this year, Peru is tapping global investors by raising USD 2.5 bln through a sustainability bond. The funds generated will be allocated towards repurchasing existing sovereign debt and financing government expenditure. The bond, which matures in 2033, was introduced with a yield of 7.35%, marginally lower than the initial guidance of 7.7%. With the newly issued bonds, Peru aims to repurchase and potentially swap existing sol-denominated sovereign bonds due in the upcoming years. Thus far this year, Peru’s sol-denominated sovereign bonds have yielded 8.76%, outperforming a significant number of local-currency debts in emerging markets. Meanwhile, Peru’s USD notes handed investors 3.27% returns, beating the 2.21% average among peers.