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Peru LNG
Why buy this bond?
Gas plays a key role in the fight against climate change
Attractive income with regular semi-annual income payment
The company received certification from the World Customs Organization (WCO) in June 2020
The company owns the largest natural gas export infrastructure in Peru .
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Peru LNG
The company owns the largest natural gas export infrastructure in Peru . The project connects Peru's largest gas fields with onshore refineries, where the gas is liquefied and exported to energy-hungry regions such as Asia and Europe.
In June 2020, the company received certification from the World Customs Organization (WCO ) as an authorized economic operator that meets all customs and tax requirements.
Complete information
Issuer
Peru LNG SRL
The name of the issue
Peru LNG SRL, 5.375% 22mar2030
Currency
US dollar $
Emission volume
940,000,000 USD
The face value of the bond
$1000
Indicative market price
$828 USD
Discount
172 USD
Coupon from face value
5.375% p.a
Coupon payout frequency
Due date
semi-annual salary
22.3.2030
100% liquidity
Yes
Minimum volume
$200,000
Yield to Maturity
10.17% pa - before taking into account all costs
Preferred scenario
42.08% pa - before taking into account all costs
Rating
BB- (Fitch)
Hierarchy of debt
Senior uninsured
You can find the prospectus for the bonds here:
5.375% Senior Notes due 2030 - Prospectus
Important information
Gas plays a key role in the fight against climate change
Even before we move fully to hydrogen, solar and wind, the transition from coal will be through gas , which is significantly cleaner and, thanks to the shale revolution, affordable. You could say that coal is "dead." In the next 20 years, there will be an upgrade of power plants from coal to gas.
Gas demand should look like this over the next 20 years. This year, the EU imported a record amount of LNG ( approx. +100% year-on-year ).
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Development of the bond price
The bond was trading around $1,000 a piece before the pandemic, and that's where it should look again. Even thanks to falling interest rates, it will more likely go to USD 1,100.
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Bond summary
We perceive the bond as another very good opportunity in the Covid recovery bond peloton. We expect it to compare to $1050 (+26.71%) within 6 months .
The bond was selected through the same investment, risk-management and decision-making process as other bonds purchased in 2020 as part of the Covid recovery.