Obbligazione Perú 3.75% ( XS1373156618 ) in EUR

Emittente Perú
Prezzo di mercato refresh price now   100 EUR  ▲ 
Paese  Perù
Codice isin  XS1373156618 ( in EUR )
Tasso d'interesse 3.75% per anno ( pagato 1 volta l'anno)
Scadenza 28/02/2030



Prospetto opuscolo dell'obbligazione Peru XS1373156618 en EUR 3.75%, scadenza 28/02/2030


Importo minimo 100 000 EUR
Importo totale 1 000 000 000 EUR
Coupon successivo 01/03/2026 ( In 260 giorni )
Descrizione dettagliata Il Perù è un paese dell'America del Sud ricco di storia Inca, biodiversità amazzonica e paesaggi andini spettacolari.

The Obbligazione issued by Perú ( Peru ) , in EUR, with the ISIN code XS1373156618, pays a coupon of 3.75% per year.
The coupons are paid 1 time per year and the Obbligazione maturity is 28/02/2030







Filed Pursuant to Rule 424(b)(5)
Registration No. 333-205678
PROSPECTUS SUPPLEMENT
(To prospectus dated August 18, 2015)
Republic of Peru
1,000,000,000 3.750% Euro-Denominated
Global Bonds Due 2030
The bonds will bear interest at the rate of 3.750% per year, accruing from March 1, 2016. Interest on the bonds is payable on March 1
of each year, beginning on March 1, 2017. The maturity of the bonds will be March 1, 2030. The bonds are not redeemable prior to maturity.
The bonds will be direct, general, unconditional, unsubordinated and unsecured obligations of Peru. The bonds will rank equally,
without any preference among themselves, with all of Peru's other existing and future unsecured and unsubordinated obligations relating to
external indebtedness of Peru, as described in "Description of the Securities -- Debt Securities -- Defined Terms" in the accompanying
prospectus.
The bonds will contain provisions regarding acceleration and future modifications to their terms, including "collective action clauses".
Under these provisions, which differ from the terms of Peru's external indebtedness issued prior to August 6, 2015 and which are described
in the section entitled "Description of the Bonds--Collective Action Clauses," "Description of the Bonds--Meetings, Amendments and
Waivers--Collective Action" in this prospectus supplement and the sections entitled "Description of the Securities--Debt Securities--
Default; Acceleration of Maturity," "Description of the Securities--Debt Securities--Collective Action Clauses" and "Description of the
Securities--Debt Securities--Meetings, Amendments and Waivers--Collective Action" in the accompanying prospectus, Peru may amend
the payment provisions of the bonds and other reserve matters listed in the indenture with the consent of the holders of: (1) with respect to a
single series of debt securities, more than 75% of the aggregate principal amount outstanding of such series; (2) with respect to two or more
series of debt securities, if certain "uniformly applicable" requirements are met, more than 75% of the aggregate principal amount of the
outstanding debt securities of all series affected by the proposed modification, taken in the aggregate; or (3) with respect to two or more
series of debt securities, more than 66 2/3% of the aggregate principal amount of the outstanding securities of all series affected by the
proposed modification, taken in the aggregate, and more than 50% of the aggregate principal amount of the outstanding securities of each
series affected by the proposed modification, taken individually.
We will apply to admit the bonds for listing on the Official List of the Luxembourg Stock Exchange and for trading on the Euro MTF
Market. This prospectus supplement, together with the accompanying prospectus dated August 18, 2015, shall constitute a prospectus for the
purpose of the Luxembourg law dated July 10, 2015 (as amended) on prospectuses for securities.
Per
Bond
Total
Public offering price................................................................................................
99.753%
99,530,000
Underwriting fee(1)................................................................................................
0.13%
1,300,000
Proceeds to Peru (before expenses and the underwriting fee)(2) ................................
99.753%
99,530,000
(1)
See "Underwriting".
(2)
See "Use of Proceeds".
The bonds have been delivered in book-entry form only through the facilities of Euroclear Bank S.A./N.V., as operator of the
Euroclear System ("Euroclear") and Clearstream Banking, société anonyme, Luxembourg ("Clearstream, Luxembourg") against payment on
or about March 1, 2016.
Global Coordinators and Bookrunners
BBVA
BNP PARIBAS
HSBC
March 14, 2016
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


You should rely only on the information contained in this prospectus supplement and the accompanying prospectus, including
the information incorporated by reference. We have not, and the underwriters have not, authorized any other person to provide you
with different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are not,
and the underwriters are not, making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You
should assume that the information appearing or incorporated by reference in this prospectus supplement and the accompanying
prospectus is accurate only as of its date. Our financial condition and prospects may have changed since that date.
TABLE OF CONTENTS
Page
Prospectus Supplement
About this Prospectus Supplement and the Accompanying Prospectus ................................................................................................S-1
Notice to Investors in the European Economic Area ................................................................................................................................
S-1
Notice to Investors in the United Kingdom ...............................................................................................................................................................
S-2
Forward-Looking Statements................................................................................................................................................................ S-2
Sovereign Immunity................................................................................................................................................................................................
S-3
Certain Legal Restrictions................................................................................................................................................................
S-3
The Offering ................................................................................................................................................................................................
S-4
Risk Factors ................................................................................................................................................................................................
S-6
Recent Developments ...............................................................................................................................................................................................
S-7
Use of Proceeds ................................................................................................................................................................................................
S-31
Description of the Bonds ................................................................................................................................................................
S-31
United States Federal Income Tax Considerations for United States Persons ................................................................................................
S-38
Peru Taxation................................................................................................................................................................................................
S-41
European Union Savings Directive................................................................................................................................................................
S-41
Underwriting................................................................................................................................................................................................
S-41
Validity of the Bonds................................................................................................................................................................................................
S-44
General Information................................................................................................................................................................................................
S-44
Prospectus
About this Prospectus ...............................................................................................................................................................................................
i
Forward-Looking Statements ................................................................................................................................................................ i
Data Dissemination ................................................................................................................................................................................................
ii
Use of Proceeds ................................................................................................................................................................................................
1
Debt Record ................................................................................................................................................................................................1
Description of the Securities ................................................................................................................................................................ 1
Taxation ................................................................................................................................................................................................ 13
Plan of Distribution ................................................................................................................................................................................................
18
Official Statements ................................................................................................................................................................................................
19
Validity of the Securities ................................................................................................................................................................
19
Authorized Representative ................................................................................................................................................................
19
Where You Can Find More Information ................................................................................................................................................................
19
i
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


ABOUT THIS PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS
This prospectus supplement and the accompanying prospectus contain or incorporate by reference information you should
consider when making your investment decision. You should rely only on the information provided or incorporated by reference in
this prospectus supplement and the accompanying prospectus, which should be read together. References in this prospectus
supplement to "we," "us," "our" and "Peru" are to the Republic of Peru.
We are furnishing this prospectus supplement and the accompanying prospectus solely for use by prospective investors in
connection with their consideration of a purchase of bonds. After having made all reasonable queries, we confirm that:
·
the information contained or incorporated by reference in this prospectus supplement and the accompanying prospectus is
true and correct in all material respects and is not misleading as of the date of this prospectus supplement or the
accompanying prospectus;
·
changes may occur in our affairs after the date of this prospectus supplement and the accompanying prospectus;
·
certain statistical information included in this prospectus supplement and the accompanying prospectus reflects the most
recent reliable data readily available to us as of the date hereof;
·
we hold the opinions and intentions expressed in the accompanying prospectus, this prospectus supplement and any
document incorporated by reference in this prospectus supplement and the accompanying prospectus, as superseded in this
prospectus supplement;
·
to the best of our knowledge and belief, we have not omitted other facts, the omission of which makes this prospectus
supplement and the accompanying prospectus, as a whole, misleading; and
·
we accept responsibility for the information we have provided or incorporated by reference in this prospectus supplement
and the accompanying prospectus.
Prospective investors should rely on the information provided in this prospectus supplement, the accompanying prospectus and
the documents incorporated by reference in this prospectus supplement and the accompanying prospectus. No person is authorized to
make any representation or give any information not contained in this prospectus supplement, the accompanying prospectus or the
documents incorporated by reference in this prospectus supplement and the accompanying prospectus. Any such representation or
information not contained in this prospectus supplement, the accompanying prospectus or the documents incorporated by reference in
this prospectus supplement and the accompanying prospectus must not be relied upon as having been authorized by us or the
underwriters. Please see "General Information -- Where You Can Find More Information" for information on the documents that are
incorporated by reference in this prospectus supplement and the accompanying prospectus.
We are not offering to sell any securities other than the bonds offered under this prospectus supplement. We are not offering to
sell the bonds in places where such offers are not permitted by applicable law. You should not assume that the information contained
or incorporated by reference in this prospectus supplement or the accompanying prospectus is accurate as of any date other than their
respective dates. Our economic, fiscal or political circumstances may have changed since such dates.
The bonds described in this prospectus supplement are debt securities of Peru being offered under registration statement no.
333-205678, filed with the SEC under the U.S. Securities Act of 1933, as amended, or the Securities Act. The accompanying
prospectus is part of that registration statement. The accompanying prospectus provides you with a general description of the
securities that we may offer, and this prospectus supplement contains specific information about the terms of the offering and the
bonds. This prospectus supplement together with the accompanying prospectus may only be used for the purpose for which they have
been published. Before you invest, you should read this prospectus supplement and the accompanying prospectus, together with
additional information described under "Where You Can Find More Information" in the accompanying prospectus.
NOTICE TO INVESTORS IN THE EUROPEAN ECONOMIC AREA
This prospectus supplement has been prepared on the basis that any offer of bonds in any Member State of the European
Economic Area which has implemented the Prospectus Directive (each, a "Relevant Member State") will be made pursuant to an
exemption under the Prospectus Directive from the requirement to publish a prospectus for offers of bonds. Accordingly any person
making or intending to make an offer in that Relevant Member State of bonds which are the subject of the offering contemplated in
this prospectus supplement may only do so in circumstances in which no obligation arises for Peru or any of the underwriters to
publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the
S-1
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


Prospectus Directive, in each case, in relation to such offer. Neither Peru nor the underwriters have authorized, nor do they authorize,
the making of any offer of bonds through any financial intermediary, other than offers made by the underwriters, which constitute the
final placement of the bonds contemplated by this prospectus supplement. The expression "Prospectus Directive" means Directive
2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant
Member State), and includes any relevant implementing measure in the Member State and the expression "2010 PD Amending
Directive" means Directive 2010/73/EU.
NOTICE TO INVESTORS IN THE UNITED KINGDOM
This prospectus supplement is for distribution only to persons who (i) have professional experience in matters relating to
investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as
amended, the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies,
unincorporated associations, etc.") of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to
whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and
Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be
communicated (all such persons together being referred to as "relevant persons"). This prospectus supplement is directed only at
relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity
to which this prospectus supplement relates is available only to relevant persons and will be engaged in only with relevant persons.
FORWARD-LOOKING STATEMENTS
We have made forward-looking statements in this prospectus supplement. Forward-looking statements are statements that are
not historical facts. These statements are based on our current plans, estimates, assumptions and projections. Therefore you should not
place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to
update any of them in light of new information or future events.
Forward-looking statements involve inherent risks. We caution you that many factors could affect the future performance of the
Peruvian economy. These factors include, but are not limited to:
·
external factors, such as:
·
interest rates in financial markets outside Peru;
·
changes in Peru's credit ratings;
·
changes in import tariffs and exchange rates;
·
changes in international commodity prices;
·
recession, low economic growth or economic contraction affecting Peru's trading partners;
·
deterioration in the economic condition of Peru's neighboring countries;
·
a liquidity contraction in the international financial markets; volatility in equity, debt or foreign exchange markets, which
could lead to domestic volatility, declines in foreign direct and portfolio investment and potentially lower international
reserves;
·
international hostilities; and
·
the decisions of international financial institutions, such as the International Monetary Fund, or IMF, the Inter-American
Development Bank, or IADB, the International Bank for Reconstruction and Development, or IBRD, the World Bank, or
the Andean Development Corporation, or CAF, regarding the terms of their lending and financial assistance to Peru; and
·
internal factors, such as:
·
deterioration in general economic and business conditions in Peru;
·
social, political or military events in Peru;
·
increase in crime rates;
·
natural events, such as climatic changes, earthquakes and floods;
·
reduction in foreign currency reserves;
·
reduction in fiscal revenue;
·
reduced levels of foreign direct investment;
S-2
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


·
the ability of the government to enact key economic reforms;
·
higher domestic debt;
·
increased rates of domestic inflation;
·
the level of foreign direct and portfolio investment in Peru; and
·
prevailing Peruvian domestic interest rates.
SOVEREIGN IMMUNITY
Peru is a sovereign state. Consequently, it may be difficult for you to obtain or realize upon judgments of courts in the United
States against Peru. Among other requirements, the execution by a Peruvian court of a judgment ordering payment by Peru of any
principal or interest arising from the bonds will be subject to availability of funds according to the statute passed by the Peruvian
Congress setting forth the budget corresponding to the fiscal year in which such payment is due.
Limitations Imposed by Budget Laws to Satisfy Payments on the Bonds
A final judgment against Peru ordering payment on the bonds is subject to Peruvian budget regulations. Pursuant to the Budget
National System General Law (Ley General del Sistema Nacional de Presupuesto) and the Public Sector Budget Law for Fiscal Year
2016 (Ley de Presupuesto del Sector Público para el Año Fiscal 2016), payments of judgments, arbitral awards, conciliation minutes
or direct treatment agreements are subject to the following process:
·
between 3% and 5% of the budget corresponding to the Ministry of Economy and Finance may be allocated towards
payments and judgments;
·
payments must be made by each governmental entity (in our case, the Ministry of Economy and Finance) from its
respective bank account, taking into account all mandatory priorities;
·
in case the judgment payment orders exceed the 3% threshold, the Ministry of Economy and Finance would pay its
creditors on a pro rata basis; and
·
payment requirements in excess of the 5% threshold, must be included in the budgets approved for the following five
fiscal years.
Enforceability of Judgments
If the payment of any judicial order is not honored by the Ministry of Economy and Finance, a proceeding for the execution of
judicial resolutions may be initiated as provided for in article 688 et. seq. of the Peruvian Civil Procedure Code. Notwithstanding the
foregoing, in accordance with section 73 of the Peruvian Political Constitution, public domain assets destined for the public service
and use are inalienable and are not subject to any interest due to possession (prescripción adquisitiva). Public domain assets are a
special form of property that can only be set aside for the public use, a service to the community or national interest. As such, those
assets as well as (i) property used by a diplomatic or consular mission of Peru; (ii) property of a military character and under the
control of a military authority or defense agency of Peru; (iii) public property; (iv) shares of Peruvian public sector entities or shares of
Peruvian private sector entities owned or controlled by Peru or by a Peruvian public sector entity, or revenues collected from the sale
of such shares, to the extent such shares or revenues are exempt by Peruvian law from attachment or execution; or (v) funds deposited
in Peru's accounts held in the Peruvian financial system that constitute public domain property, are neither subject to liens or
encumbrances nor to a judicial attachment. Conversely, assets not set aside for the public domain are subject to the private domain of
the Peruvian government (which includes, among others, the cash deposits of the Peruvian government abroad) and as such may be
encumbered or attached.
For more information, see "Description of the Securities -- Jurisdiction, Consent to Service and Enforceability" in the
accompanying prospectus.
CERTAIN LEGAL RESTRICTIONS
The distribution of materials relating to the offering and the transactions contemplated by the offering may be restricted by law
in certain jurisdictions. If materials relating to the offering come into your possession, you must inform yourself and observe all of
these restrictions. The materials relating to the offering do not constitute, and may not be used in connection with, an offer or
solicitation in any place where offers or solicitations are not permitted. If a jurisdiction requires that the offering be made by a licensed
broker or dealer and either the underwriters or any affiliate of the underwriters is a licensed broker or dealer in such jurisdiction, the
S-3
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


offering shall be deemed to be made by such underwriter or such affiliate on behalf of Peru in such jurisdiction. For more information,
see "Underwriting".
THE OFFERING
This summary highlights information presented in greater detail elsewhere in this prospectus supplement and the accompanying
prospectus. This summary is not complete and does not contain all the information you should consider before investing in the bonds.
You should carefully read this entire prospectus supplement and the accompanying prospectus before investing.
Issuer
Republic of Peru.
Securities
3.750% Euro-Denominated Global Bonds due 2030, which we refer to herein as the
"bonds".
Issue Amount
1,000,000,000 aggregate principal amount.
Issue Price
99.753%, plus accrued interest, if any, from March 1, 2016.
Maturity Date
March 1, 2030.
Interest Rate
3.750% per year, computed on the basis of a 365 (or 366) day year.
Interest Payment Dates
Annually on March 1 of each year, commencing on March 1, 2017.
Redemption or Sinking Fund
The bonds will not benefit from any sinking fund. We may not redeem the bonds before
maturity. We will redeem the bonds at par at maturity.
Use of Proceeds
The proceeds from the sale of the bonds will be 997,530,000. The underwriting fee of
1,300,000 will be paid separately by us, as described in "Underwriting". We intend to use
the proceeds of this offering to prefinance a portion of the general financial requirements
for the year 2017.
Collective Action Clauses
The bonds will contain provisions regarding acceleration and future modifications to their
terms, including "collective action clauses". Under these provisions, which differ from the
terms of Peru's external indebtedness issued prior to August 6, 2015 and which are
described in the section entitled "Description of the Bonds--Collective Action Clauses" in
this prospectus supplement and the sections entitled "Description of the Securities--Debt
Securities--Default; Acceleration of Maturity," "Description of the Securities--Debt
Securities--Collective Action Clauses" and "Description of the Securities--Debt
Securities--Meetings, Amendments and Waivers--Collective Action" in the
accompanying prospectus, Peru may amend the payment provisions of the bonds and other
reserve matters listed in the indenture with the consent of the holders of: (1) with respect to
a single series of debt securities, more than 75% of the aggregate principal amount
outstanding of such series; (2) with respect to two or more series of debt securities, if
certain "uniformly applicable" requirements are met, more than 75% of the aggregate
principal amount of the outstanding debt securities of all series affected by the proposed
modification, taken in the aggregate; or (3) with respect to two or more series of debt
securities, more than 66 2/3% of the aggregate principal amount of the outstanding
securities of all series affected by the proposed modification, taken in the aggregate, and
more than 50% of the aggregate principal amount of the outstanding securities of each
series affected by the proposed modification, taken individually.
Negative Pledge
The bonds will contain certain covenants, including restrictions on the incurrence of liens.
These covenants are subject to many exceptions.
Denominations
We will issue the bonds only in denominations of 100,000 and integral multiples of
1,000 in excess thereof.
Ranking
The bonds will be direct, general, unconditional, unsubordinated and unsecured obligations
of Peru. The bonds will rank at least equally, without any preference among themselves,
with all of our other existing and future unsecured and unsubordinated obligations relating
to our external indebtedness as described in "Description of the Securities -- Debt
Securities -- Defined Terms" in the accompanying prospectus.
S-4
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


Additional Amounts
We will make payments of principal and interest in respect of the bonds without
withholding or deduction for or on account of any present or future Peruvian taxes, duties,
assessments or governmental charges of whatever nature except as required by law. If we
are required by law to make any such withholding or deduction, we will pay such
additional amounts as may be necessary to ensure the net amount received by holders after
such withholding or deduction equals the amount such holders would have received in the
absence of such withholding or deduction, subject to certain exceptions set forth under
"Description of the Bonds -- Additional Amounts".
Further Issues
Without the consent of holders of the bonds, we may issue additional debt securities with
the same terms and conditions as the outstanding bonds, except for the issue date, issue
price and amount of first interest payment, and we may consolidate the additional bonds to
form a single series with the outstanding bonds issued hereunder.
Form of Securities
We will issue the bonds in the form of one or more registered global bonds without
coupons. No bonds will be issued in bearer form. The bonds will be registered in the name
of a nominee for The Bank of New York Mellon, London Branch which will serve as
common depositary for Euroclear and Clearstream, Luxembourg.
You will be required to make initial settlement for bonds issued pursuant to the offering in
immediately available funds.
As an owner of a beneficial interest in the global bonds, you will generally not be entitled
to have your bonds registered in your name, will not be entitled to receive certificates in
your name evidencing the bonds and will not be considered the holder of any bonds under
the indenture for the bonds.
Record Dates
The record date with respect to any interest and/or principal payment date will be the 15th
day prior to that interest and/or principal payment date, whether or not that record date is
also a business day.
Governing Law
The bonds issued hereunder will be governed by the laws of the State of New York.
Trustee
The Bank of New York Mellon.
Paying Agent, Registrar and Transfer The Bank of New York Mellon, London Branch.
Agent
Luxembourg Paying Agent and
The Bank of New York Mellon (Luxembourg) S.A.
Luxembourg Transfer Agent
Common Depositary for Euroclear and The Bank of New York Mellon, London Branch.
Clearstream, Luxembourg
Listing
We will apply to admit the bonds for listing on the Official List of the Luxembourg Stock
Exchange and for trading on the Euro MTF Market.
Listing Agent
The Bank of New York Mellon (Luxembourg) S.A.
S-5
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


RISK FACTORS
You should carefully consider the following risk factor, the risk factors described in our Annual Report on Form 18-K for the
year ended December 31, 2014 filed with the U.S. Securities and Exchange Commission on July 15, 2015, as such Annual Report may
be further amended from time to time, as well as the other information included or incorporated by reference into this prospectus
supplement and the accompanying prospectus, before making an investment decision. These risk factors are not intended as, and
should not be construed as, an exhaustive list of relevant risk factors. There may be other risks that a prospective investor should
consider that are relevant to its own particular circumstances or generally. You should consult your financial and legal advisors
about the risk of investing in the new bonds. Peru disclaims any responsibility for advising you on these matters.
The bonds permit us to make payments in U.S. dollars if we are unable to obtain euro.
If the euro is unavailable to us due to the imposition of exchange controls or other circumstances beyond our control or if the
euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency
or for the settlement of transactions by public institutions of or within the international banking community, then all payments in
respect of the bonds will be made in U.S. dollars until the euro is again available to us or so used. The amount payable on any date in
euro will be converted into U.S. dollars on the basis of the then most recently available market exchange rate for euro, as the case may
be. Any payment in respect of the bonds so made in U.S. dollars will not constitute an event of default under the bonds or the
indenture governing the bonds.
S-6
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


RECENT DEVELOPMENTS
The information contained in this section supplements the information about Peru corresponding to the headings below that are
contained in Exhibit 99.D to Peru's Annual Report on Form 18-K, for the fiscal year ended December 31, 2014 filed with the U.S.
Securities and Exchange Commission on July 15, 2015, as such Annual Report may be further amended from time to time. To the
extent the information in this section differs from the information contained in such Annual Report, as amended to the date of this
prospectus supplement, the information in this section replaces such information. Capitalized terms not defined in this section have
the meanings ascribed to them in the Annual Report.
Recent Developments
The Republic of Peru is in receipt of a document titled "Claimants' Notice of Intent to Commence Arbitration Under the United
States ­ Peru Trade Promotion Agreement" dated February 1, 2016, in the name of Gramercy Funds Management LLC, Gramercy
Peru Holdings LLC, Gramercy Investment Advisors LLC and Gramercy Advisors, LLC, setting forth potential claims under the
United States ­ Peru Trade Promotion Agreement related to the Agrarian Reform Bonds. No arbitration proceeding related to this
Notice has been commenced against Peru in respect of the Agrarian Reform Bonds as of the date of this prospectus supplement.
Preliminary Results for 2015
Set forth below is preliminary economic results for the year ended December 31, 2015. Unless otherwise stated, historical soles
amounts were converted into U.S. dollars at historical annual average exchange rates. This preliminary information is based on recent
reports published by the Central Bank that are subject to review and adjustment in all respects:

GDP grew by 3.26% in real terms compared to 2014.

The current account registered a deficit of U.S.$ 8.43 billion, or 4.40% of GDP, primarily due to a deficit in the trade
balance of U.S.$ 3.21 billion and negative investment income of U.S.$ 6.82 billion, during 2015.

The value of exports decreased by 13.60%, primarily due to a lower number of shipments of mining, oil and natural gas
products, as well as the contraction in traditional exports to the United States and Japan and non-traditional exports to
Brazil.

The value of imports decreased by 8.73% in the year ended December 31, 2015, compared to the same period in 2014,
principally as a result of imports of capital goods, transportation equipment, inputs and fuel.

The capital account balance increased by 49.67%, to a surplus of U.S.$ 10.22 billion.

Net international reserves decreased from approximately U.S.$ 62.31 billion as of December 31, 2014, to
approximately U.S.$ 61.49 billion as of December 31, 2015.

The non-financial public sector deficit was U.S.$ 3.67 billion, or 2.1% of GDP.

Total government revenues were U.S.$ 38.4 billion, or 20.0% of GDP, compared to U.S.$ 45.0 billion, or 22.2% of
GDP, in 2014.

The non-financial government expenditures were U.S.$ 40.5 billion, or 21.3% of GDP, compared to U.S.$ 43.4 billion,
or 21.5% of GDP, in 2014.

The public sector external debt totaled U.S.$ 23.6 billion, or 12.3% of GDP, compared to U.S.$ 19.8 billion, or 9.7% of
GDP, as of December 31, 2014. 1.04% of public external debt was denominated in soles.

The interest payments on public sector external debt were U.S.$ 952.5 million, or 0.5% of GDP.

The rate of inflation was 4.40%.
The Economy
Gross Domestic Product and the Structure of the Economy
During the nine months ended September 30, 2015, Peru's economy grew 2.7% in real terms as a result of higher domestic
demand which increased 2.8% compared to the nine months ended September 30, 2014, due to an increase of 3.8% in public and
private consumption in the nine months ended September 30, 2015 compared to the same period of 2014.
In the nine months ended September 30, 2015, private consumption experienced an annualized growth of 3.4% in real terms and
gross private investment decreased by 5.5%, as compared to the same period in 2014. Public sector investment decreased 13.8% in the
nine months ended September 30, 2015 due mainly to the decrease of 29.2% and 36.2% in investments by regional governments and
municipal governments, respectively, in the nine months ended September 30, 2015 compared to the same period in 2014. Such
decrease was partially offset by the investments of the national government in the nine months ended September 30, 2015, which grew
S-7
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


10.9% compared to the same period in 2014, primarily due to an increase in expenditures in construction, recovery and improvement
of roads in connection with projects of the Ministry of Transport and Communications. Private investment decreased 5.5% in the nine
months ended September 30, 2015 as compared to the same period in 2014, primarily due to a decrease in the exchange terms of
exports relative to imports and a slower than expected progress in investment projects particularly in the mining sector. Total gross
investment during the nine months ended September 30, 2015 remain the same as in the nine months ended September 30, 2014.
The following tables set forth GDP by expenditure for the periods presented.
Gross Domestic Product by Expenditure
(in millions of U.S. dollars, at current prices)
For the nine months
ended September 30,
2014(1)
2015(1)
Government consumption ............................................................
17,682.7
17,375.6
Private consumption................................................................
96,698.3
92,434.6
Gross investment:
Public sector.................................................................................
7,041.2
5,608.5
Private sector................................................................................
30,779.5
27,719.1
Change in inventories................................................................
1,029.5
3,406.5
Total gross investment ................................................................
38,850.1
36,734.1
Exports of goods and services......................................................
34,072.3
29,522.8
Imports of goods and services......................................................
36,662.9
33,677.2
Net (exports) ................................................................................
(2,590.6)
(4,154.4)
GDP .............................................................................................
150,640.4
142,389.9
(1)
Preliminary data.
Source: Central Bank.
Gross Domestic Product by Expenditure
(in millions of soles, at constant 2007 prices)
For the nine months
ended September 30,
2014(1)
2015(1)
Government consumption ............................................................
39,578.5
42,067.3
Private consumption................................................................
216,440.8
223,726.3
Gross investment:
Public sector.................................................................................
15,730.5
13,565.3
Private sector................................................................................
76,087.1
71,897.3
Change in inventories................................................................
2,414.1
8,774.3
Total gross investment ................................................................
94,231.7
94,236.9
Exports of goods and services......................................................
85,854.6
86,477.4
Imports of goods and services......................................................
91,531.5
92,702.2
Net (exports) ................................................................................
(5,676.8)
(6,224.8)
GDP .............................................................................................
344,574.2
353,805.7
(1)
Preliminary data.
Source: Central Bank.
In the nine months ended September 30, 2015 and compared to the nine months ended September 30, 2014, public savings
reached 5.4% and 7.6% of GDP, respectively, due to a decrease in current revenues, while private savings was 15.7% of GDP for the
nine months ended September 30, 2015 compared to 13.7% for the comparable period of 2014.
S-8
065134-0015-16037-Active.18709682.1
03/14/2016 12:04 PM


Document Outline