Cleary Gottlieb represented Paraguay in a $600 million bond issuance and a PYG 4.74 trillion bonds offering. This was Paraguay’s first international debt offering since achieving an investment grade rating in July 2024. The offering included a concurrent tender for outstanding bonds, with proceeds allocated for debt management and government purposes.
On March 7, 2025, Cleary Gottlieb represented the Republic of Paraguay in a significant debt offering which included $600 million worth of bonds at a 6.65% interest rate due in 2055, and PYG 4.74 trillion in bonds at an 8.5% interest rate due in 2035. This issuance marks Paraguay’s first foray into international capital markets following its achievement of an investment grade rating in July 2024.
The bond offering commenced on February 18, 2025, was priced on February 25, 2025, and concluded on March 4, 2025. Concurrently, a tender offer was made to purchase selected outstanding bonds due in 2026 and 2027, which also began on February 18, 2025, expired on February 24, 2025, and settled on March 4, 2025.
Citigroup Global Markets Inc. and Itau BBA USA Securities Inc. were appointed as initial purchasers for the bond offering, in addition to serving as joint dealer managers for the tender offer. A portion of the net proceeds from this bond sale was allocated towards the purchase price of the outstanding bonds accepted through the tender offer, while the remaining funds are designated for general government expenditures.
In summary, Paraguay’s recent $600 million bond offering marks a notable return to international debt markets following its investment grade rating. The concurrent tender offer demonstrates proactive debt management, with proceeds aimed at several fiscal objectives. The engagement of reputable financial institutions further underscores the significance of this financial maneuvering for Paraguay’s economic strategy.
Original Source: www.clearygottlieb.com
