This represents the longest-term issue by a multilateral institution in the country's history and a new record for CAF in the Paraguayan capital market.
The Development Bank of Latin America and the Caribbean (CAF) has issued and placed bonds totaling 125 billion guaraníes (US$15.4 million) in the Paraguayan market, establishing an unprecedented term of five years and a coupon of 6.65% per year.
This represents the longest-term issue by a multilateral institution in the country's history and a new record for CAF in the Paraguayan capital market.
"This historic-term issue in the Paraguayan market reflects the growing investor confidence in CAF and Paraguay, while demonstrating our firm commitment to deepening the local capital market and strengthening the country's productive sector over the long term," said CAF's Executive President, Sergio Díaz-Granados.
This placement, which sets a new standard for a multilateral organization in Paraguay, not only contributes to the development and maturity of the country's capital market but also represents CAF's commitment to strengthening the productive sector with broader financing horizons.
This is the second issue CAF has made in less than six months and the third under its registered guaraní-denominated public debt issuance program. The previous issue was for a total of 197.5 billion guaraníes (US$24.4 million).
The funds raised will be used to finance strategic initiatives for small and medium-sized businesses operating in the agricultural and agroindustrial sectors, helping them improve their competitiveness in productive sectors of the Paraguayan economy.
The issue, which has been met with great interest from institutional investors, comes amid a favorable economic climate for the country, highlighting the growing dynamism and confidence in Paraguay's financial market.
With this placement, CAF continues to channel resources to promote sustainable development and regional integration for the timely provision of multiple, high-value-added financial services to public and private sector clients in its member countries, financing projects to promote social inclusion, improve the productivity and competitiveness of economic sectors, develop economic and social infrastructure, and support the region's physical and cross-border integration, among others.
