Cleary Gottlieb represented Bank of America Merrill Lynch and Itaú, as initial purchasers, in connection with the Republic of Paraguay’s $600 million 5.000 percent bonds due 2026 offering, which closed on March 31, 2016.
The offering was made on a Rule 144A/Regulation S basis, and the bonds have been admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. The 5.000 percent bonds due 2026 were issued pursuant to a new base indenture, which incorporated the newest collective action clauses based on the recent model CACs published by the International Capital Markets Association (ICMA).
This transaction is the Republic’s fourth international offering. Paraguay issued $500 million of its 4.625 percent bonds due 2023 in January 2013, $1.0 billion of its 6.100 percent bonds due 2044 in August 2014, and it issued an additional $280 million of its 4.625 percent bonds due 2023 in April 2015. Cleary also represented the initial purchasers in such transactions.
Paraguay intends to use the net proceeds to finance infrastructure and capital expenditures and to refinance a portion of its outstanding debt in accordance with the Annual Budget Law No. 5554/2016 (Ley No. 5554/2016 del Presupuesto General de la Nación).