Frigorífico Concepción from Paraguay issued bonds in NY under Rule 144A / Regulation S for a value of USD 40 million. The Bolivian subsidiary of said issuer established guarantees on the debt, in addition to a number of properties in Paraguay and receivables from activities in Bolivia and Paraguay that were set as guarantees on behalf of the investors. To this end, a guarantee trust was created in Paraguay with Finexpar as trustee and Wilmington Trust acting as beneficiary. Wilmington Trust was also the Trustee in the Indenture under New York law.
The bonds expire in 2025 and accrue an interest rate of 11%. Oppenheimer acted as underwriter for the operation
Although issuances in international capital markets are not common for companies incorporated in Paraguay, this is the second debt offering from Frigorífico Concepción this year, being a “retap” of the USD 100 million issuance in January 2020.
With the proceeds from the last issuance, Frigorífico Concepción aims to increase production at its meat production facilities in Paraguay, as well as cancelling existing debts and funding the expansion of the meat production facilities in Bolivia.
Frigorífico Concepción ranks among the top five exporters of meat products in Latin America. Its facilities can accommodate up to 40,000 head of cattle. The Concepción Group exports meat products to more than 30 countries through eight subsidiaries that operate in the processing industry.
Wilmington Trust Advisor
BKM | Berkemeyer
ugo Berkemeyer and Martín Carlevaro, Partners, and Milena Sljivich, Associat, in Asunción