Paraguay Successfully Completes $600 Million Debt Offering

Cleary Gottlieb assisted Paraguay in a $600 million bond issuance and PYG 4.74 trillion debt offering. This marked Paraguay’s first foray into international capital markets post-investment grade rating achieved in July 2024. The offering was launched on February 18, 2025, and concluded on March 4, coinciding with a tender offer for existing bonds.

On March 7, 2025, Cleary Gottlieb represented the Republic of Paraguay in a significant debt issuance, which included $600 million in bonds with a 6.65% interest rate, maturing in 2055, as well as PYG 4.74 trillion in bonds at 8.5%, due in 2035. This marked Paraguay’s inaugural debt offering in the international capital markets following its investment grade rating achieved in July 2024.
The bond offering was initiated on February 18, 2025, finalized with pricing on February 25, and concluded on March 4, 2025. Additionally, this offering coincided with a cash tender offer aimed at repurchasing certain outstanding bonds maturing in 2026 and 2027, which ran from February 18 to February 24 and was settled on March 4, 2025.
Citigroup Global Markets Inc. and Itau BBA USA Securities Inc. served as the initial purchasers for the bond offering and acted as joint dealer managers for the accompanying tender offer. A portion of the proceeds from the bond sales was allocated for the purchase price of the bonds that were accepted in the tender offer, while the remaining funds are designated for general government expenditures.

This recent debt offering by Paraguay signifies a critical advancement for the nation in international capital markets, especially following its investment grade designation. The combined offering and concurrent tender underscore Paraguay’s strategic financial management and commitment to optimizing its debt portfolio. Cleary Gottlieb’s role in facilitating this transaction further exemplifies their expertise in complex financial deals.

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