Attracting investor attention as a small, sub-investment grade
sovereign can be tough.
PARAGUAY | Capital markets: On the map
Paraguay hopes to raise its profile among global investors by tapping international bond markets
For Paraguay, that is why tapping the international bond
markets has been so important. The sovereign has a second
benchmark deal in the pipeline, which it hopes will further
lift its profile among global investors.
As it opens its doors to international fixed income
investors, Paraguay hopes to gain recognition for its other
efforts to make the country more enticing to global
Its reforms have led to credit rating upgrades from two
major agencies this year already. Yet the country still faces
multiple hurdles before it can join the investment-grade club.
Limited flexibility on monetary policy, low per-capita GDP,
weak infrastructure and "still evolving" institutions are
factors that restrain the country’s rating to BB
with Standard & Poor’s, despite an upgrade in
A junk rating did not deter investors who piled into
Paraguay’s Eurobond market...
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