BBVA Prepares Paraguay Debut

BBVA Paraguay is preparing a cross-border dollar bond, what would be the first from an issuer in that country. The bank is targeting a 10-year bond for about $200m, according to a report from Moody’s assigning a Ba3 rating. Such a bond would play to strong demand for high-yield credit and diversity, investors say, though success would depend on appropriate pricing and would be helped, ideally, by a guarantee from the parent. BBVA and Citi are heard managing the sale, with US and European investor meetings beginning Wednesday and finishing Tuesday. According to Dealogic, no dollar bonds have been issued by Paraguayan issuers. The IFC gave BBVA Paraguay a 4-year $30m loan last year to help it expand access to financing small and medium agribusiness entrepreneurs, the multilateral’s first long-term financing for a Paraguayan financial institution.