Paraguay launched the second issue of Sovereign Bonds In Guaraníes, Paraguay’s domestic currency, reaching a total amount of Gs. 4,741,842,000,000, equivalent to USD 600 million, with an interest rate of 8.5% and an unprecedented term of 10 years.
In addition, it issued an additional tranche worth USD 600 million, with a rate of 6.65% for a term of 30 years.
In this way, the Republic of Paraguay strengthened its presence in the international capital market with two successful issues, highlighting the confidence in the stability of the Guaraní currency.
Both demand and investor participation demonstrate remarkable interest. The USD tranche registered 7.5 times higher demand, reaching USD 4.52 billion.
The guaraní issue attracted more than 44 international investors, reflecting the interest in acquiring the Government Bonds in local currency, while more than 150 investors participated in the placement of the dollar tranche, consolidating Paraguay’s position in global financial markets.
These results reaffirm the confidence of international investors in the country’s solid macroeconomic fundamentals, its economic prospects and the policies implemented by the Government to strengthen public management.
This recognition is not an isolated event. In July 2024, Moody’s Ratings, one of the most prestigious rating agencies in the world, raised Paraguay’s credit rating from Ba1 to Baa3, granting it Investment Grade for the first time. Subsequently, in October 2024, Fitch Ratings reaffirmed Paraguay’s rating at BB+ and Standard and Poor’s adjusted the country’s rating to BB+ with a positive outlook in January 2025.
On the other hand, this milestone represents a point of reference for Paraguayan companies seeking to attract foreign capital to finance their investments. In addition, this issue of bonds in Guaraníes diversifies the Central Administration’s portfolio, continuously and gradually increasing the proportion in local currency and extending the maturity dates of public debt.
It should be noted that this transaction was carried out within the framework of Law No. 7408/2024, which approves the General Budget of the Nation for 2025, as well as Law No. 6638/2020 on Public Debt Management. The resources obtained will be allocated in accordance with the provisions of said laws.
