Kallpa Generación S.A., the largest electricity generator in Peru, successfully completed a bond issuance in the international market for US$700 million.
Kallpa Generación S.A., the largest electricity generator in Peru, successfully completed a bond issuance in the international market for US$700 million. This will allow the company to proactively refinance its Kallpa 2027 bond for US$650 million and complete the financing for the construction of its Sunny solar project, a 309MW plant located in Arequipa.
Kallpa Generación maintains investment-grade ratings from international rating agencies Moody’s and Fitch (Baa3 and BBB-, respectively).
The operation drew strong interest from international capital markets. The transaction followed the completion of a roadshow with more than 16 meetings and 71 investors in just two days. Demand for the bonds quadrupled the offering, showing significant oversubscription of nearly US$3 billion.
This level of demand and the final rate obtained reflect the company’s strength, with over 9 years in the capital markets as an investment-grade issuer—surpassing even the success of the placement made in January of this year. Likewise, it also demonstrated the international market’s confidence in Kallpa Generación, the company’s outlook to continue investing with a solid capital structure, and the long-term stability perceived by investors in the Peruvian electricity sector.
Regarding the issuance details, the company explained that it was an international offering under the 144A/Reg S format, with a 5.50% coupon and a 10-year bullet maturity. These conditions reflect a spread of only 25 basis points over the Peruvian sovereign, making it the international corporate bond issuance by a Peruvian company with the lowest spread over the sovereign.
The issuance was managed internationally by Deutsche Bank, J.P. Morgan, and Santander.