Fynsa
In the Peruvian capital market, debt financing (bonds and loans) predominates over equity issuance. The Lima Stock Exchange (BVL) has not registered a local Initial Public Offering (IPO) since 2012. In contrast, only in the first eight months of 2025 private companies placed around S/ 17.4 billion (US$ 4.7 billion) in bonds, mainly abroad. This confirms that, in 2025, companies continue to favor debt over equity.
The Peruvian stock market shows little dynamism in primary issuances. The last local IPO was that of InRetail in 2012, and since then there have been no new IPOs due to low liquidity and interest in the BVL. Even companies such as Auna have opted to list in deeper external markets, such as New York.
Unlike the stock market, corporate debt remains dynamic. In 2024, issuance totaled US$ 470 million, affected by high global rates. However, in 2025 the outlook improves: the BCRP reports greater activity in private fixed income, with international issues to refinance liabilities and a predominance of short-term instruments in the local market. AFP and insurance companies increase their demand for longer term bonds, favored by low inflation and lower rates. In the first half of 2025, public issuance fell 16% y-o-y, but Moody's Local projects a rebound of 8-12% by the end of the year, still below pre-pandemic levels.
The preference for debt responds to structural factors. In terms of taxation, interest is deductible from income tax, which reduces the financial cost compared to dividends. In addition, the cost of equity capital is high in Peru, so an IPO is usually more expensive than issuing bonds. In addition, listing shares is a complex and costly process in a small local market with low demand. On the other hand, debt finds a stable appetite among banks, AFPs and insurance companies. In 2025, more than 77% of public placements were short-term instruments in soles, mainly from banks. Longer term issues are usually made in international markets, to obtain better amounts and conditions.
The Peruvian stock market is shallow and illiquid: capitalization is concentrated in a few issuers and the low free float limits the placement of shares without pressuring prices. This, coupled with moderate economic growth, discourages new IPOs and reinforces the vicious circle of low liquidity. In addition, the corporate structure dominated by family groups avoids shareholder dilution and the greater scrutiny required by corporate governance. In contrast, debt makes it possible to raise funds without ceding control or changing the ownership structure, making it more convenient.
Bank credit continues to be the main source of financing in Peru. In 2025, the corporate portfolio grows due to lower lending rates and economic recovery. With abundant liquidity, banks offer more agile and competitive loans than a public issue, which reduces the attractiveness of the stock market.
In 2025, Peruvian issuers maintain a strong preference for debt over equity, supported by lower costs, higher demand and a shallow equity market. Bonds and bank loans will remain the main financing tools, while equity issuance will continue to be exceptional in the local landscape.
