Paraguay in $600 Million and PYG 4.74 Trillion Debt Offering and Concurrent Tender Offer

Cleary Gottlieb represented the Republic of Paraguay (Paraguay) in its issuance of $600 million 6.65% bonds due 2055 and PYG 4.74 trillion 8.5% bonds due 2035.

This transaction constituted Paraguay’s first debt offering in the international capital markets since obtaining investment grade rating in July 2024.

The offering launched on February 18, 2025, priced on February 25, 2025, and closed on March 4, 2025.

The bond offering was made concurrent with an offer to purchase for cash certain outstanding bonds of Paraguay due 2026 and 2027, which launched on February 18, 2025, expired on February 24, 2025, and settled on March 4, 2025.

Citigroup Global Markets Inc. and Itau BBA USA Securities Inc. acted as initial purchasers for the bond offering and joint dealer managers for the tender offer.

Paraguay used a portion of the net proceeds of the sale of the bonds to pay the purchase price of outstanding bonds accepted in the offer to purchase. The remaining proceeds will be applied for general government purposes.