So far this year, investors' demand for corporate bonds placed through Initial Public Offering (IPO) has greatly exceeded the offer, Peru's Superintendence of Securities Market (SMV) reported.
"So far in 2017, IPO allocations of debt instruments by companies from various economic sectors have reached US$726 million, with demand exceeding sums offered by 160%," SMV indicated.
Such results reveal not only investors' increasing interest in the local securities market, but also Lima stock's attractiveness as a competitive financing alternative for more enterprises.
"This situation has allowed the public offering market to sustain a significant dynamism," it added.
A total of 14 public offerings have been realized in the first two months of 2017, 13 of them Sol-denominated. These have recorded annual coupon rates of 5.91%-8.25% for maturities ranging from 180 days to 25 years.
"The public-offering market is expected to maintain its dynamism in coming months, with more companies accessing financing through bond issuing at the local securities market," SMV projected.
(END) MMG/MDV/DHT/MVB