Paraguay to Engage Buyside

Paraguay is taking advantage of supportive market conditions to meet bond investors during a 2-day roadshow this week, according to investors familiar with the plans. The sovereign is scheduled to visit fixed-income accounts in New York Thursday and Boston Friday. Citi is managing the process. The sovereign has been aiming to return to the international bond markets, with government officials having told LatinFinance that an issue is a long-term goal, though the government is not in urgent need of funds. The government has also said it would also prefer to wait until receiving an investment-grade rating. Paraguay is rated B1/BB minus. The country’s banks have recently approached the bond markets. Banco Continental Paraguay priced a $200m 8.875% 2017 bond in June to some $450m in demand, though decided not to settle the deal after the impeachment of President Fernando Lugo worried the market. In 2011, BBVA Paraguay sold a $100m 3-year bond at a 9.75% yield. The region’s sovereigns have seen well-bid sales this month, with Colombia raising $559m-equivalent in peso-denominated bonds last week and Brazil selling $2.5bn in 2023 bonds. Also, Chile has registered a debt shelf of up to $1.7bn, according to the SEC, though there were no details regarding a specific upcoming transaction. Proceeds are earmarked for the sovereign’s general budget purposes. Chile last issued in the cross-border markets in September 2011, selling $1bn in 2021 bonds and $350m-equivalent in reopened peso-denominated 2020 bonds, through Deutsche Bank and HSBC.