Cleary Gottlieb represented Paraguay in a $600 million bond issuance, marking its first international debt offering since an investment-grade rating in July 2024. The issuance includes $600 million in bonds due 2055 and PYG 4.74 trillion due 2035, alongside a concurrent tender offer for existing bonds. Citigroup and Itau BBA acted as initial purchasers and dealers.
On March 7, 2025, Cleary Gottlieb facilitated a significant financial transaction for the Republic of Paraguay. This involved the issuance of $600 million in bonds with a 6.65% interest rate due in 2055 and an additional PYG 4.74 trillion in bonds offering 8.5% interest, maturing in 2035. This marks Paraguay’s inaugural debt offering in international capital markets since receiving an investment-grade rating in July 2024.
The bond offering was initially launched on February 18, 2025, went through pricing on February 25, and officially closed on March 4, 2025. Concurrently, there was a tender offer for purchasing certain outstanding Paraguay bonds due in 2026 and 2027. This tender offer also commenced on February 18, 2025, with a deadline of February 24, 2025, and settlement occurring on March 4, 2025.
Citigroup Global Markets Inc. and Itau BBA USA Securities Inc. served as the joint dealer managers and initial purchasers for this notable bond offering. The Republic of Paraguay utilized a portion of the proceeds from the bond issuance to fund the purchase prices of the outstanding bonds accepted in the tender offer, while the remainder will be allocated to general government purposes.
In conclusion, Paraguay’s recent issuance of $600 million in bonds alongside a domestic currency offering demonstrates a significant stride in its financial endeavors, particularly after achieving an investment-grade rating. The involvement of Citigroup and Itau BBA as key financial partners further underscores the importance of this transaction in bolstering Paraguay’s presence in international capital markets.
Original Source: www.clearygottlieb.com
