Gramercy Funds Management and the Republic of Peru Settle International Arbitration Award for $85 Million

GREENWICH, Conn.--(BUSINESS WIRE)--Gramercy Funds Management LLC and Gramercy Peru Holdings LLC (“GPH”, and together “Gramercy”) are pleased to announce that they have reached a settlement agreement with the Republic of Peru definitively resolving the final award issued by the arbitration tribunal adjudicating Gramercy’s claims under the United States–Peru Trade Promotion Agreement (the “Treaty”) with respect to Gramercy’s investment in approximately 9,600 Peruvian agrarian reform bonds that GPH had purchased. The investment arbitration, ICSID Case No. UNCT/18/2, led to an award dated December 6, 2022, ordering Peru to pay Gramercy damages and costs as of the date of the Award, plus compound interest on the base financial award at a rate of 7.22% until full payment.

Pursuant to the settlement, the Republic has agreed to pay Gramercy US $85 million in full satisfaction of the amounts due under the Award. The Republic made an initial payment of US $45 million on November 4, 2024, and will pay the remaining US $40 million according to a payment schedule agreed between the parties and set out in the Stipulated Judgment entered by the D.C. District Court in proceedings initiated by Gramercy to enforce the Award. Gramercy has in turn returned the agrarian reform bonds to the Republic.

Gramercy stated: “Gramercy is pleased that the parties’ constructive dialogue has led to an amicable resolution of the Award, providing compensation to Gramercy and its investors.”

About Gramercy Funds Management

Gramercy is a global emerging markets investment manager based in Greenwich, Connecticut with offices in London, Buenos Aires, Miami, West Palm Beach and Mexico City, and dedicated lending platforms in Mexico, Turkey, Peru, Pan-Africa, Brazil, and Colombia. The $6-plus billion firm, founded in 1998, seeks to provide investors with a better approach to emerging markets, delivering attractive risk-adjusted returns supported by a transparent and robust institutional platform. Gramercy offers alternative and long-only strategies across emerging markets asset classes, including multi-asset, private credit, public credit, and special situations. Gramercy’s mission is to positively impact the well-being of our clients, portfolio investments and team members. Gramercy is a Registered Investment Adviser with the US Securities and Exchange Commission (SEC), a Signatory of the Principles for Responsible Investment (PRI), a Signatory to the Net Zero Asset Managers initiative (NZAMI) and a Supporter of the Task Force on Climate-Related Financial Disclosures (TCFD). Gramercy Ltd, an affiliate, is registered with the UK Financial Conduct Authority (FCA). For more information, visit www.gramercy.com.