Cleary Gottlieb represented Paraguay in a $600 million debt issuance of bonds due in 2055 and 2035, signifying its entry into international markets post investment grade rating. The offering launched in February 2025 and involved a tender offer for outstanding bonds, managed by Citigroup and Itau BBA.
On March 7, 2025, Cleary Gottlieb announced its representation of the Republic of Paraguay in a significant debt issuance totaling $600 million in 6.65% bonds due in 2055, alongside PYG 4.74 trillion in 8.5% bonds maturing in 2035. This marked Paraguay’s inaugural entry into international capital markets following its investment grade rating obtained in July 2024.
The debt offering commenced on February 18, 2025, was priced on February 25, 2025, and officially closed on March 4, 2025. This issuance was conducted simultaneously with a cash tender offer to purchase specific outstanding Paraguayan bonds maturing in 2026 and 2027, which also began on February 18, 2025, and concluded on March 4, 2025.
Citigroup Global Markets Inc. and Itau BBA USA Securities Inc. were engaged as initial purchasers for the bond offering, as well as joint dealer managers for the concurrent tender offer. A portion of the net proceeds from the bond sale will be utilized to settle the purchase price for the outstanding bonds accepted in the tender offer, while the remainder will be allocated toward general government expenses.
In summary, Paraguay’s recent debt offering of $600 million and PYG 4.74 trillion is a pivotal step in its financial strategy, following an upgrade to an investment grade rating. The concurrent tender offer illustrates a proactive approach in managing its existing debt, providing essential funding avenues to support government initiatives.
Original Source: www.clearygottlieb.com
