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Petroleos del Peru SA’s (“Petroleos”) dollar bonds sank by ~2.5 points yesterday after Peru refused to bail-out the struggling state-owned company. Petroleos needs $1.15bn in cash to pay the suppliers of the refinery and to convert a $750mn loan with the government into shares. The Peruvian government said that it will not finance either of those citing insufficient funds but added that it would reschedule the debt payments. Earlier in 2022, Petroleos had received funds worth $1bn when it faced a similar crisis. The company, mired into debt, has been warning of its dwindling cash position for months.
Petroleos’ 4.75% 2032s dropped by 2.6 points to trade at 70.5 cents on the dollar, yielding 10%.
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