The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Lima acts as the source of mining capital

CVRD deal heralds mining finance bonanza


Outside the world of archaeology and Inca ruins, Peru is rarely considered a world leader in much other than bureaucracy and bad driving. But when it comes to mining and companies that seek to raise capital on local markets in Latin America, the mineral-rich Andean nation has positioned itself as the place to be. According to Dealogic, of the mining sector bond deals in Latin America over the past 18 months, Lima has handled six major issues, far more than in the traditionally sophisticated financial capitals of São Paolo, Mexico City, Santiago and Buenos Aires.

“Peru’s capital market is becoming a key source of mine capital as the investor base widens and the market gives companies more exposure. It’s one of the most significant developments we’ve seen in a long time in mine finance in Latin America,” says Jorge Luis Rodriguez, head of economic research at Lima brokerage Centura SAB. “The risk perception of issuing in Peru has fallen dramatically,” says Carlos Galvez, CFO at Buenaventura, a local metals company.

The market is not just for local mining companies. Canada’s Barrick Gold, one of the world’s biggest bullion producers, issued $100 million in debt in two tranches in April this year and April 2005 with paper of six-year and eight-year maturities, led by Citigroup and local bank Banco de Crédito.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree