Cleary Gottlieb facilitated a $600 million bond issuance for Paraguay, along with a PYG 4.74 trillion offering. This marked Paraguay’s first international capital market activity post-investment grade rating. The offering coincided with a tender offer to repurchase certain existing bonds.
On March 7, 2025, Cleary Gottlieb announced its role in representing the Republic of Paraguay in a significant financial transaction involving the issuance of $600 million in 6.65% bonds maturing in 2055, alongside PYG 4.74 trillion in 8.5% bonds due in 2035. This issuance marked Paraguay’s inaugural venture into the international capital markets following its upgraded investment grade rating in July 2024.
The bond offering commenced on February 18, 2025, with pricing occurring on February 25, 2025, and closing on March 4, 2025. Additionally, this issuance coincided with a tender offer to repurchase certain outstanding bonds maturing in 2026 and 2027, which started on the same initial date and settled on March 4, 2025.
Citigroup Global Markets Inc. and Itau BBA USA Securities Inc. served as the initial purchasers for the bond offering and acted as joint dealer managers for the concurrent tender offer. Paraguay intends to utilize part of the net proceeds from this bond sale to finance the purchase of the accepted outstanding bonds, with the remainder allocated for general governmental purposes.
In conclusion, the Republic of Paraguay successfully navigated its first debt offering after attaining an investment grade rating, securing $600 million in international bonds. The transaction not only highlights Paraguay’s re-engagement in global markets but also aligns with its financial restructuring efforts through a concurrent tender offer. This strategic move may foster further economic growth and stability in Paraguay.
Original Source: www.clearygottlieb.com
