Paraguay picks two banks for new benchmark issue

Paraguay is understood to have nominated Bank of America Merrill Lynch and Citi to lead a potential $550m cross-border bond sale this month, one banker away from the proceedings said.

When contacted by LatinFinance, sources at BAML and Citi declined to comment.

Last week, Paraguay’s Ministry of Finance said it received permission from the Supreme Court to issue $550m in bonds, after congress had capped the proposed issuance to $350m late last year.

Finance Minister Santiago Peña told LatinFinance earlier this month that the sovereign planned to go to the cross-border bond market in March.

The landlocked South American country will use proceeds to fund investments in infrastructure projects and pay back debt, Peña added.

Paraguay tapped the international bond market in March 2016, raising $600m in 10-year notes.