Capital Markets

While the Lima Stock Exchange (BVL) may have fallen short of expectations in terms of new issuances in 2012, its overall performance was solid, with the General Index up 5.9% over the previous year. Though market capitalisation and negotiated volumes dropped from 2012 to 2013, most analysts are positive in their outlooks for the near future. Private equity is expected to continue to grow in the coming years, given the relative shortage of high-return investment opportunities in the US and Europe. The current trend of Peruvian corporate bond listings abroad seems likely to continue, with demand remaining strong and investment banks maintaining an interest. Expansion and diversification of the BVL are also expected in the coming years as the government implements a series of reforms aimed at increasing listings, facilitating new financing structures and attracting investors. This chapter contains interviews with Francis Stenning, CEO of the BVL, and Luis Valdivieso, President of the Pension Fund Administrators’ Association.