Paraguay’s $500 Million Debt Offering and Concurrent Tender Offer

Cleary Gottlieb represented Citigroup Global Markets Inc. and Itau BBA USA Securities Inc., as initial purchasers, in Republic of Paraguay’s (Paraguay) issuance of $500 million 5.85% bonds due 2033, which have been admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The offering launched and priced on June 28, 2023, and closed on July 12, 2023.

The bond offering was made concurrent with an offer to purchase for cash certain outstanding bonds of Paraguay, which launched on June 28, 2023; expired on July 5, 2023; and settled on July 12, 2023. Cleary represented Citigroup Global Markets Inc. and Itau BBA USA Securities Inc., as joint dealer managers, for the offer to purchase. This transaction also constituted the third liability management exercise by Paraguay since the enactment of Law No. 6638/20 in November 2020.

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 to partially finance the 2023 budget.