BONDS AND NOTES ISSUED (Tables)

12 Months Ended

Dec. 31, 2021

Bonds and Notes Issued

This item consists of the following:

As of December 31, 2021

As of December 31, 2020

Annual interest

Interest

Issued

Carrying

Issued

Carrying

rate

payment

Maturity

amount

Maturity

amount

(000)

S/(000)

(000)

S/(000)

Senior notes - BCP (i)

4.25

Semi-annual

April 2023

US$716,301

2,821,515

April 2023

US$716,301

2,552,985

Senior notes - BCP (ii)

From 2.70 to 5.38

Semi-annual

January 2025

US$700,000

2,721,570

January 2025

US$700,000

2,453,353

Senior notes - BCP (iii)

From 4.65 to 4.85

Semi-annual

September 2024

S/2,900,000

2,484,121

September 2024

S/2,900,000

2,469,832

Senior notes - Credicorp Ltd. (iv)

2.75

Semi-annual

June 2025

US$500,000

1,906,364

June 2025

US$500,000

1,737,139

Senior notes - BCP (v)

Libor 3M + 55 pb

Quarterly

March 2022

US$30,000

119,585

March 2022

US$30,000

108,479

Senior notes - BCP (vi)

0.45

Semi-annual

December 2023

¥5,000,000

172,773

Senior notes - BCP (vii)

0.42

Semi-annual

August 2021

¥5,000,000

175,087

Senior notes - BCP (viii)

Libor 3M + 100 pb

Quarterly

March 2021

US$70,000

253,412

MMT 100 - Secured notes- CCR Inc. (ix)

2012 Series C Floating rate certificates

4.75

Monthly

July 2022

US$315,000

104,659

July 2022

US$315,000

257,996

Corporate bonds -

Fourth program

Tenth issuance (Series A, B and C) - BCP

From 5.31 to 5.50

Semi-annual

October 2022 / November 2022

S/400,000

399,923

December 2021/ November 2022

S/550,000

527,794

Fifth program

Third issuance (Series C) - BCP

4.25

Semi-annual

July 2022

S/109,310

109,182

July 2022

S/109,310

108,980

Third issuance (Series D) - BCP

3.88

Semi-annual

August 2022

S/42,660

42,580

August 2022

S/42,660

42,456

Third issuance (Series B) - BCP

4.88

Semi-annual

October 2021

S/42,200

42,169

Third issuance (Series A) - BCP

4.59

Semi-annual

July 2021

S/70,770

69,178

551,685

790,577

As of December 31, 2021

As of December 31, 2020

Annual interest

Interest

Issued

Carrying

Issued

Carrying

rate

payment

Maturity

amount

Maturity

amount

(000)

S/(000)

Subordinated bonds - BCP (x)

From 3.13 to 6.13

Semi-annual

April 2027 / September 2031

US$1,350,000

5,269,458

April 2027 / July 2030

US$1,144,700

4,028,266

Subordinated bonds - BCP (x)

6.88

Semi-annual

September 2026

US$181,505

651,176

Subordinated bonds -

First program

First issuance (Series A) - Pacífico Seguros

6.97

Quarterly

November 2026

US$60,000

239,220

November 2026

US$60,000

217,260

First issuance (Series A) - BCP

6.22

Semi-annual

May 2027

S/15,000

15,000

May 2027

S/15,000

15,000

Second program

Second issuance (Series A) - Pacífico Seguros

4.41

Semi-annual

December 2030

US$50,000

181,511

December 2030

US$50,000

164,784

First issuance (Series B) - Mibanco

7.22

Semi-annual

June 2027

S/30,000

30,000

June 2027

S/30,000

30,000

First issuance (Series A) - Mibanco (xi)

8.50

Semi-annual

May 2026

S/100,000

100,000

Third program

Issuance II - Banco de Crédito de Bolivia

5.25

Semi-annual

August 2022

Bs137,200

80,453

August 2022

Bs137,200

73,546

Issuance III - Banco de Crédito de Bolivia

6.00

Semi-annual

August 2030

Bs100,000

58,461

August 2030

Bs100,000

53,278

Issuance I - Banco de Crédito de Bolivia

6.25

Semi-annual

August 2028

Bs70,000

40,922

August 2028

Bs70,000

37,295

Fourth program

First issuance (Series A) - MiBanco (xi)

5.84

Semi-annual

March 2031

S/155,000

146,276

791,843

691,163

Negotiable certificate of deposit - Mibanco

From 1.71 to 5.80

Annual

January 2022 / August 2025

S/939

845

January 2021 / November 2024

S/1,385

1,385

Subordinated negotiable certificates - BCP

Libor 3M + 279 bp

Quarterly

November 2021

US$2,960

10,718

16,944,418

16,181,568

Interest payable

134,411

137,839

Total

17,078,829

16,319,407

During the first quarter of 2018, in accordance with the risk exposure strategy of the interest rate, the Group discontinued the fair value hedge of certain bonds, issued in US. dollar at a fixed rate, through the liquidation of the IRS. The accumulated profit of the fair value of these bonds at the time of the liquidation of the derivatives amounted to US$22.0 million (equivalent to S/71.7 million), recorded in the liability, which has been transferred to the consolidated statement of income up to the date of maturity of said bonds. As of December 31, 2021, the liability amounts to US$0.9 million, equivalent to S/3.6 million, (US$2.6 million, equivalent to S/9.5 million, as of December 31, 2020). The amount recorded in the interim condensed consolidated statement of income ended December 31, 2021, amounts to US$1.7 million, equivalent to S/6.6 million (US$6.1 million, equivalent to S/21.2 million, during the period ended December 31, 2020).

In addition, international issues maintain certain operating covenants, which, in Management’s opinion, the Group has complied with at the dates of the statement of financial position.

(i)

The Bank can redeem the total or part of the notes at any time, having as a penalty an interest rate equal to the Treasury of the United States of America’s rate plus 50 basis point. The payment of principal will take place on the due date of the notes or when the Bank redeems these notes.

(ii)

In September 2019, the Bank announced a repurchase offer and propose an exchange to the holders of senior notes of the US$ 800.0 million issued in September of 2010, managing to repurchase US$ 220.3 million and exchanging US$ 205.0 million with new senior notes, at market rates , whose terms and conditions are very similar to the previous issue. At the end of said offer, the Bank kept a notional value payable amounting to US$374.6 million, which matured in September 2020.

In the same way, in September 2019, the Bank issued senior notes of approximately US$700.0 million (that amount includes the US$205.0 million of the exchange mentioned in the paragraph before). The Bank can redeem all or part of the notes at any date, between October 11, 2021 and December 10, 2024, at a redemption price equal to or greater than : (i) 100 percent of the aggregate principal amount of the notes to be redeemed; and (ii) the sum of the present value of each remaining scheduled payment discounted at interest rate equal to the Treasury of the United States of America’s rate plus 20 basis points. From December 11, 2024 onwards, the Bank can redeem the total or part of the notes to a redemption price equal to 100 percent of the aggregate principal amount of the notes to be redeemed.

The payment of principal will take place on the due date or when the Bank redeems the notes.

On December 31, 2021, the Bank maintains a CCS which was designated as cash flows hedges of a part of senior notes in US dollar subject to exchange rate risk for a notional amount of US$50.0 million, equivalent to S/199.4 million (US$50.0 million equivalent to S/181.1 million, as of December 31, 2020), see note 13(c). By means of the CCS, the cover part of senior notes was economically converted to soles.

(iii)

In September 2019, the Bank announced a repurchase offer and propose an exchange to the holders of senior notes of the S/2,000 million issued in October of 2017, managing to repurchase S/291.2 million and exchanging S/1,308.8 million with new senior notes, at market rates, whose terms and conditions are very similar to the previous issue. At the end of said offer, the Bank keeps a notional value payable amounting to S/400.0 million, which was fully redeemed in October 2020.

At the same date, the Bank issued senior notes for approximately S/2,500.0 million (this amount includes the S/1,308.8 million of the exchange mentioned in the paragraph before). The Bank can redeem the whole or part of the senior notes between October 17, 2021 and August 16, 2024, at a redemption price equal to or greater than: (i) 100 percent of the aggregate principal amount of the notes, and (ii) the sum of the present value of cash flows discounted at interest rate equivalent to sovereign bonds issued by the government of Perú or other comparable titles plus 25 basis points. As of August 17, 2024, the Bank may redeem all or part of the senior notes at a redemption price equal to 100 percent of the aggregate amount of the principal to be redeemed.

The payment of principal will take place on the due date or when the Bank redeems the notes.

(iv)

In June 2020, Credicorp Ltd. issued Senior Notes for approximately US$500.0 million, equivalent to S/1,993.5 million as of December 31, 2021 (US$500.0 mllion, equivalent to S/1,810.5 million as of December31, 2020) at fixed interest rate, whose maturity date is on June 17, 2025.

These Senior Notes can redeem the whole or part mainly by the following ways (i) at any time prior to May 17, 2025, make whole or partial call, at Treasury plus 40 basis points, and (ii) at any time on or after May 17, 2025, at par value.

The payment of principal will take place on the due date or when Credicorp Ltd. redeems the notes.

At December 31, 2021, the Group has designated as a hedge of a net investment of a foreign operation a portion of these bonds issued for approximately US$228.8 million, equivalent to S/912.2 million (US$135.4 million, equivalent to S/490.3 million, as of December 31, 2020), which hedges by the same amount the exposure of the net investment in the subsidiary Atlantic Security Holding Corporation (ASHC), established in Cayman Islands and whose functional currency is the US dollar, see note 34.2(b)(ii). This hedge covers the fluctuation in the exchange rate risk associated with the conversion of the net investment held in ASHC to the Group’s functional currency (soles).

(v)

On December 31, 2021, the Group maintains an IRS for a notional amount of US$30.0 million, equivalent to S/119.6 million (US$30.0 million equivalent to S/108.6 million, as of December 31, 2020), see note 13(c), which was designated as cash flows hedge of a corporate bond issued in US dollar at a variable rate. By means of the IRS, this bond was economically converted to a fixed interest rate.

(vi)

In November of 2021, the Bank issued Senior Notes for approximately JPY5,000.0 million, equivalent to S/173.2 million as of December 31, 2021 at fixed interest rate of 0.45 percent, which matures on December 31, 2023.

As of December 31, 2021, the cash flows of the notes issued in yen subject to exchange rate risk have been hedged through a CCS designated as a cash flow hedge, for a notional amount of JPY5,000.0 million, equivalent to S/173.2 million, see note 13(c).

(vii)

In July of 2019, the Bank issued Senior Notes for approximately JPY5,000.0 million, equivalent to S/185.7 million as of August 31, 2021 (JPY5,000.0 million, equivalent to S/175.3 million as of December 31, 2020) at fixed interest rate. These Notes matured in August 2021.

As of August 31, 2021, the CCS that was designated as a cash flow hedge of the notes issued in yen has matured for a notional amount of JPY5,000.0 million. By means of the CCS, the note was economically converted to soles.

(viii)

In February of 2019, the Bank issued Senior Notes for approximately US$70.0 million at variable rate. These Notes matured in March 2021.

On March, an interest rate swap (IRS), which was designated as cash flows hedge of these Senior Notes, matured for a notional amount of US$70.0 million (US$70.0 million equivalent to S/253.5 million as of December 31, 2020), see note 13(c). By means of the IRS, the note was economically converted to a fixed interest rate.

(ix)

This issue is guaranteed by the future collection of electronic payment orders sent to BCP (including foreign branches) through the Society Worldwide Interbank Financial Telecommunications, through which the correspondent bank uses the network to places orders of payment to the beneficiary that is not a financial institution.

(x)

In July 2020, The Bank repurchased US$294.6 million from the total US$476.1 million outstanding amount of “6.875% Fixed- to-Floating Rate Subordinated Notes due 2026”. Also, the Bank repurchased US$224.9 and exchanged US$200.4 million from the total US$720 million outstanding amount of “6.125% Fixed-to-Floating Rate Subordinated Notes due 2027”.

Also, on July 1, 2020, the Bank issued Subordinated Notes under the Medium-Term Bond Program for a total amount of US$850.0 million at a semi-annual coupon rate of 3.125 percent maturing in July 2030 under the name of “3.125% Subordinated Fixed-to-Fixed Rate Notes due 2030 (Callable 2025)”. On July 1, 2025, the Bank may redeem all or part of the notes at a redemption price equal to 100% of the aggregate amount of the principal of the notes to be redeemed. From now on, the Bank may redeem all or part of the notes at a redemption price equal to the higher of (1) 100% of the principal amount of the notes and (2) the sum of the remaining cashflows discounted at a rate equivalent to the US Treasury interest rate plus 45 basis points. The payment of principal will take place on the due date or when the Bank redeems the notes.

Through a repurchase offer announced in March 2021, the Bank repurchased US$88.5 million and exchanged US$11.0 million from the total US$294.7 million outstanding amount of “6.125% Fixed-to-Floating Rate Subordinated Notes due 2027”, which were registered and settled on March 31, 2021. Also, in June 2021, US$60.6 million were repurchased from the total US$181.5 million outstanding amount of “6.875% Fixed-to-Floating Rate Subordinated Notes due 2026”.

On March 29, 2021, the Bank announced its decision to exercise the Make-Whole Redemption option of the entire two subordinated Notes, “6.875% Fixed-to-Floating Rate Subordinated Notes due 2026” and “6.125% Fixed-to-Floating Rate Subordinated Notes due 2027”, whose holders have not accepted. The redemption date for both bonds was effective on April 28, 2021.

On the other hand, effective on March 30, 2021, the Bank issued Subordinated Notes under the Medium-Term Bond Program amounting to US$500.0 million at a semi-annual rate of 3.25 percent maturing in September 2031 called “3,250% Subordinated Fixed-to-Fixed Rate Notes due 2031 (Callable 2026)”. As of September 30, 2026, It will be paid a fixed interest rate equal to U.S. Treasury interest rate, comparable to 5 years, plus 245.0 basis points. On September 30, 2026, the Bank may redeem all or part of the notes at a redemption price equal to 100% of the aggregate amount of the principal of the notes to be redeemed. From now on, the Bank may redeem all or part of the notes at a redemption price equal to the higher of (1) 100% of the principal amount of the notes and (2) the sum of the remaining cashflows discounted at a rate equivalent to the U.S. Treasury interest rate plus 40 basis points. The payment of the principal will take place on the expiration date of the notes or when the Bank redeems them.

(xi)

On March 30, 2021, Mibanco S.A. issued the Fourth Program Series A Subordinated Bonds amounting to S/155.0 million with a fixed rate of 5.84 percent, which matures on March 31, 2031. The payment of the principal will take place on the maturity date, or when Mibanco S.A. redeems them, only after a minimum term of 5 years from issuance date.

Also, on May 13, 2021, Mibanco S.A. exercised the option for early redemption from Second Program Series A Subordinated Bonds issue amounting to S/100.0 million.

Bonds and Notes Issued by Maturity

The table below shows the bonds and notes issued, classified by maturity, without accrued interests:

	As of December 31,		As of December 31,
	2021		2020
	S/(000)		S/(000)

Up to 3 months		164,559		291,866
From 3 months to 1 year		692,342		547,325
From 1 to 3 years		5,478,658		3,294,335
From 3 to 5 years		4,628,011		6,714,223
More than 5 years		5,980,848		5,333,819
Total		16,944,418		16,181,568