Paraguay Executes $600 Million Debt Offering and Tender Offer

Cleary Gottlieb facilitated a $600 million and PYG 4.74 trillion debt offering for Paraguay, marking its first international bond issuance since receiving an investment grade rating. The offering commenced on February 18, 2025, and closed on March 4, 2025, coinciding with a tender offer to repurchase some outstanding bonds. Proceeds will be used for bond purchases and general government purposes.

On March 7, 2025, Cleary Gottlieb announced the successful representation of the Republic of Paraguay in a significant debt issuance. The transaction involved the issuance of $600 million in 6.65% bonds maturing in 2055, alongside PYG 4.74 trillion in 8.5% bonds due in 2035. This event marked Paraguay’s inaugural debt offering on the international capital markets following its attainment of an investment grade rating in July 2024.

The bond offering commenced on February 18, 2025, with pricing occurring on February 25, 2025, and the deal officially closing on March 4, 2025. This issuance was strategically synchronized with a tender offer to acquire certain outstanding bonds due in 2026 and 2027, which also initiated on February 18 and concluded by March 4, 2025.

Citigroup Global Markets Inc. and Itau BBA USA Securities Inc. served as the initial purchasers for the bond offering while also acting as joint dealer managers for the tender offer. Paraguay allocated part of the net proceeds from the bond sale to finance the purchase of bonds accepted in the tender offer, with the remaining funds earmarked for general governmental purposes.

The recent $600 million bond issuance and PYG 4.74 trillion debt offering by the Republic of Paraguay represents a pivotal moment in its financial strategy, being its first foray into the international capital markets since acquiring an investment grade rating. The concurrent tender offer further illustrates Paraguay’s commitment to managing its debt efficiently by refinancing outstanding obligations while utilizing proceeds for broader governmental needs.

Original Source: www.clearygottlieb.com