Paraguay is lining up to sell bonds in the international market this week, according to a source familiar with the proposed deal.
The South American country has hired Citi, Itaú BBA and Goldman Sachs to arrange a series of meetings with investors starting on Monday, and it is looking to price a benchmark-sized deal in US dollars or Paraguayan guaraní, the source said.
The government plans to use the proceeds from the proposed sale for covering the budget, the source added.
Paraguay issued $500 million worth of 5.85% 2033 bonds in June last year after waiting for a market window to open at a time of rising global interest rates. Since then, the country has focused on raising funds in the local capital market or borrowing from multilateral banks for covering its financing needs.
Paraguayan President Santiago Peña said in an exclusive interview with LatinFinance in September that the country is working on a green agenda and could possibly be issuing an inaugural sustainable bond in the cross-border market as early as this year.