Paraguay Tightens Its Way into LatAm Bond Club
The Republic of Paraguay has made its anticipated international bond debut, raising $500m at a tighter than expected 4.625% level and getting about $5bn demand. The 2023 bond priced inside of Bolivia, who itself debuted last year bringing similar political and macroeconomic risk. Paraguay becomes the latest high-yield borrower to capitalize on low US rates and heavy demand for exotic credits. “Timing could not have been better for Paraguay,” notes a participating EM sovereign bond investor following the trade. The Ba3/BB minus/BB minus trade priced at par with a 4.625% coupon to yield 4.625%,...
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