Paraguay in $300 Million and PYG 6.51 Trillion Debt Offering and Concurrent Tender Offer

Cleary Gottlieb represented the Republic of Paraguay (Paraguay) in its issuance of $300 million 6.65% bonds due 2055 and PYG 6.51 trillion 8.5% bonds due 2038.

The issuance of the 2055 bonds constituted a further issuance of Paraguay’s outstanding 6.65% bonds due 2055 initially issued on March 4, 2025.

The offering launched on February 16, 2026, priced on February 24, 2026, and is expected to close on March 4, 2026.

The bond offering was made concurrent with an offer to purchase for cash $302 million of certain outstanding bonds of Paraguay due 2027 and $210 million of bonds due 2031, which launched on February 17, 2026, expired on February 23, 2026, and is expected to settle on March 4, 2026.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC acted as initial purchasers and joint bookrunners for the bond offering and joint dealer managers for the tender offer.

Paraguay used a portion of the net proceeds of the sale of the bonds to pay the purchase price of outstanding bonds accepted in the offer to purchase. The remaining proceeds will be applied for general government purposes.

The Cleary team included partner Ignacio Lagos, associate Juan Ignacio Leguizamo, and international lawyer Matias Chaves. Partner Matthew Brigham and associates Kathy Zhang, Abdel Rodríguez, and Samuel Makikalli advised on tax matters.