Paraguay draws up next cross-border bond sale

Paraguay draws up next cross-border bond sale

Bonds Paraguay

Paraguay is moving ahead with its plans to issue up to $550m in the cross-border market in March, Finance Minister Santiago Peña told LatinFinance.

The country will use the money raised in the bond sale to fund investments in infrastructure projects and pay down debt, he said.

"We’re hoping to go to the market in March," he said. "That’s what we’re working towards."

Paraguay last tapped the international debt markets in March 2016, when it raised $600m in 2026 notes that priced at par to yield 5%.

President Horacio Cartes is looking to develop infrastructure projects to help stoke economic growth. Paraguay's economy expanded 4.2% in 2016, despite an economic slowdown in neighboring Brazil, one of the country’s leading trading partners.

Last year, Paraguay awarded its first PPP to Spanish builder Sacyr, Portugal’s Mota-Engil and local road builder Ocho A to expand and maintain the Ruta 2 and Ruta 7 federal highways under a 30-year contract valued at $520m.