Brazil & Southern Cone - February 2024

PARAGUAY | First international bond issuance in local currency. Paraguay’s President Santiago Peña said on 6 February that the country had “made history”, with its first ever issuance on international markets of bonds in the local currency (guaraní), worth US$500m. According to an official statement, Peña said that bonds were issued for US$1bn of which half were issued in local currency. He said that demand for both the bonds issued in local currency and in US dollars exceeded US$5bn. The bonds issued in local currency have a coupon rate of 7.9% and are due to mature in seven years while the bonds issued in US dollars have a 6% coupon rate and mature in 12 years. Peña and his economy & finance minister, Carlos Fernández Valdovinos, said that the response showed “confidence in our currency and in the policies implemented by the government.” According to the government, the funds obtained through the sale of the bonds will be used to finance public works earmarked in the 2024 state budget and to repay debts with creditors inherited from the previous government, among other things.

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