CAF consolidates presence in Paraguay with longest term bond issuance

CAF - Development Bank of Latin America and the Caribbean - has set a new record in the Paraguayan capital market by issuing and placing bonds for a total amount of 125 billion guaraníes (PYG), equivalent to USD 15.6 million, with an unprecedented term of 5 years and a coupon of 6.65 % per annum. This represents the longest-term issue by a multilateral institution in the country's history. 

"This historic term issuance in the Paraguayan market reflects the growing confidence of investors in CAF and in Paraguay, while demonstrating our firm commitment to deepening the local capital market and strengthening the country's productive sector over the long term. Through this record term placement, we continue to consolidate our presence in Paraguay and expand the financing horizon for small and medium-sized enterprises, key players for sustainable and inclusive economic growth in the region," said , CAF's Executive President. 

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 markets but also represents CAF's commitment to strengthening the productive sector with broader financing horizons. This is the second issuance CAF has made in less than six months and the third under its registered guaraní-denominated public debt issuance program, the previous one for a total amount of PYG 197.5 billion. These actions reflect the institution's ongoing efforts to promote the development of local debt markets and debt sustainability. The proceeds will be used to finance strategic initiatives of small and medium-sized enterprises operating in the agricultural and agro-industrial sectors, so that they can improve their competitiveness in productive sectors of the Paraguayan economy.

The issue, which has received great interest by institutional investors, takes place in a favorable economic context for the country, highlighting the growing dynamism and confidence in Paraguay's financial market. CADIEM Casa de Bolsa, a leading brokerage firm in Paraguay, played a key role as an intermediary in this historic issue, facilitating the process and ensuring a successful placement in the capital market.

With this placement, CAF continues to channel resources to promote sustainable development and regional integration by delivering timely, high value-added financial services to public and private sector clients in its member countries, financing projects that promote social inclusion, enhance productivity and competitiveness in key economic sectors, develop economic and social infrastructure, and support physical and cross-border integration across the region, among other objectives.