Paraguay has recently issued USD 1 billion worth of sovereign bonds. Following another successful USD 500 million bond issuance in January 2013, this is the largest international issuance in the country's history. With a positive outlook according to Moody's, Paraguay's economy is expected to grow by 4.5% in 2014.

With Bank of America, Merrill Lynch and JPMorgan Chase & Co. as placement agents, this 30-year bond issue with a yield of 6.1% has been Paraguay's most successful issue so far, compared to an average yield of 6.29% for bonds with similar maturities from countries that share Paraguay's BB rating by Standard & Poor's. President Horacio Cartes said in a statement that this yield is unprecedented in the country.

The funds obtained from the issuance will be used for roads, construction and energy infrastructure, as well as for agricultural production. The Ministry of Public Works and Communications (MOPC) will receive USD 350 million for ongoing infrastructure projects, the National Secretariat of Housing and Habitat (SENAVITAT) will receive USD 100 million for the construction of 5,800 housing solutions, and the National Cement Industry (INC) will receive USD 67 million for industrial improvements. Similarly, the Ministry of Agriculture (MAG) will receive USD 50 million to invest in irrigation systems for small farmers and the National Electricity Administration (ANDE) will receive USD 100 million, which will be used for the expansion and modernization of electrical substations and improvements in transmission lines.

For more information about the bond issue or other related inquiries, please do not hesitate to contact us.