Paraguay renews the confidence of international investors by successfully issuing and placing USD 450 million in 30-year sovereign bonds. The rate was 4.45% and there was an oversubscription of 8 times, demonstrating a higher performance than other countries in the region. In the issuance of the year 2018, the interest rate was 5.6%, which demonstrates an improvement in the positioning of Paraguay on its way to the degree of investment. Part of these funds will be used for infrastructure projects of the central government. On the other hand, in 2019 there were 2 international project bond issues (first in the history of Paraguay) totaling more than USD 1 billion and whose performance also demonstrated the high degree of interest in international markets for investing in Paraguay (bonds 144A / Reg S at 15 years, with three times oversubscription and rates of approximately 100 bps above the sovereign’s curve). BKM was the advisor under the exclusive local law of the sponsors in both international issues (Bioceanic and Routes 2 and 7). For more information on the issuance of sovereign bonds see below 2 recent news related to the subject:
The keys of Paraguay for the successful placement of sovereign bonds
Our country placed sovereign bonds abroad for the eighth time in its history, this time, for 450 million dollars at 30 years. The slowdown and recession of 2019 were not impediment, but there were five keys to making the operation a success.
High demand for investors allowed Paraguay to obtain its best interest rate for bonds
The publication notes that Paraguay took advantage of the low bond issuance of Latin American countries and took advantage of the demand of investors, added to the country’s upward trajectory in the region.
