Cleary Gottlieb facilitated Paraguay’s issuance of $600 million and PYG 4.74 trillion in bonds, marking its first international offering after receiving an investment grade rating. The bonds were offered concurrently with a tender to buy outstanding debt. Citigroup and Itau BBA served as purchasers and managers for the transactions.
On March 7, 2025, Cleary Gottlieb represented the Republic of Paraguay in a notable financial transaction involving the issuance of $600 million in 6.65% bonds maturing in 2055 and PYG 4.74 trillion 8.5% bonds maturing in 2035. This marked Paraguay’s first engagement in international capital markets since it received an investment grade rating in July 2024.
The bond offering was originally launched on February 18, 2025, successfully priced on February 25, 2025, and ultimately closed on March 4, 2025. The transaction was coordinated concurrently with a tender offer that aimed to repurchase certain outstanding bonds set to mature in 2026 and 2027. This tender offer also commenced 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. participated as initial purchasers for the bond issuance and served as joint dealer managers for the tender offer. Paraguay intends to utilize a portion of the net proceeds from the bond sale to fulfill the purchase price obligations related to the bonds accepted in the tender offer, with the remainder allocated for general governmental purposes.
In summary, Paraguay’s issuance of $600 million in bonds and PYG 4.74 trillion highlights its return to international capital markets post-rating upgrade. The concurrent bond purchase reflects a strategic move to optimize its debt profile while financing general government operations. The successful execution of this offering signals a positive outlook for the Republic’s financial activities.
Original Source: www.clearygottlieb.com
