Provisions for the implementation of bond issuance
MINISTERIAL RESOLUTION
N° 136-2020-EF/52
April 15 2020, Lima
CONSIDERING:
That, numeral 6.1 of article 6 of Urgency Decree N° 016-2019, Urgency Decree for the Indebtedness of the Public Sector for the Fiscal Year 2020, approved the local issuance of bonds by the National Government, through one or more placements, up to an amount of S/ 11 813 381 802.00 (eleven billion eight hundred thirteen million three hundred eighty-one thousand eight hundred two and 00/100 Soles), which is part of the amount of indebtedness operations referred to in subsections 1 and 2 of section 3.2. of article 3 of the aforementioned Urgency Decree;
That, section 6.2 of that same article 6, approves that, in case the indebtedness amounts set forth in subsections 1 and 2 of section 3.2 of article 3 are reassigned to external indebtedness operations, the National Government can, in one or more placements, launch an external issuance of bonds up to the amount resulting from the rearrangement of the indebtedness amounts established in article 3.
That, according to section 3.3. of article 3 of the aforementioned Urgency Decree, the Ministry of Economy and Finance, through the General Directorate of the Public Treasury, is authorized to make reassignments among the indebtedness amounts set forth in subsection 1 of section 3.1 and subsection 1 of section 3.2; as well as reassignments among the amounts set forth in subsection 2 of section 3.1 and subsection 2 of section 3.2, including the unplaced amount of the issuance approved in section 6.1 of article 6, without exceeding the total maximum indebtedness amount established in the Urgency Decree.
That, according to section 3.4 of article 3 previously mentioned, before the reassignment takes place, it must be reported to the Budget and General Accounting Commission of Congress, indicating the amounts and projects, for its knowledge.
That, on the other hand, section 6.3 of article 6 of Urgency Decree N° 016-2019, establishes that, in case financial conditions are favourable, it is approved that the National Government can issue bonds locally or abroad, in one or more placements, with the objective of pre-financing the requirements of the next fiscal year as set forth in the Macroeconomic Multiannual Framework or the Macroeconomic Projections Report, subject to the existence of the conditions set forth in section 27.5 of article 27 of Legislative decree N° 1437, Legislative Decree of the National Public Indebtedness System.
That, section 8.1 of article 8 of the aforementioned Urgency Decree N° 016-2019, establishes that, for the implementation of external bond issuances referred to in article 6, a ministerial resolution issued by the Ministry of Economy and Finance will determine the amounts to be issued, the general conditions of the bonds, the appointment of the investment bank or banks that will provide arrangement and placement services, the entities that will provide complementary services, among other aspects;
That, the Ministry of Economy and Finance is planning to launch an external bond issuance destined to finance the Support to the Balance of Payments of this fiscal year, as well as to pre-finance the financial requirements of the Non-Financial Public Sector for the Fiscal Year 2021 in case the financial conditions are favourable;
That, through Letter N° 065-2020-EF/10.01 the Ministry of Economy and Finance submitted to Congress Report N° 080-2020-EF/52.04, prepared by the General Directorate of the Public Treasury, informing about the reassignment among the maximum amounts of commitments, external and local, authorized by Urgency Decree N° 016-2019;
That, to implement the aforementioned external bond issuance, it is necessary to hire specialized legal and financial advice services, as well as other complementary services;
That, the Third Transitory Complementary Provision of Legislative Decree N° 1437, states that, until procedures for the hiring of legal, financial and complementary specialized services referred to in the Third Final Complementary Provision are approved, the “Procedure for the hiring of specialized legal and financial advisory services under Law N° 28563, General Law of the National Indebtedness System”, approved by Supreme Decree N° 033-2006-EF, shall apply in whatever results pertinent;
That, under the aforementioned procedure, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Santander Investment Securities Inc., have been selected as financial advisors;
