IDB Invest’s Fourth Domestic Bond Offering in Paraguay

Ferrere advised IDB Invest on the transaction

IDB Invest executed its fourth offering of bond denominated in Paraguayan guaranies, to finance access to medium and long-term local currency loans to small and medium-sized enterprises in the country through Sudameris Bank S.A.E.C.A (Sudameris). The issued amount was PYG 100 billion (rd. USD 15 million), with final pricing of 7.9%.

The allocation to some of the investors could promote the opportunity for secondary market trading, further developing local markets. CADIEM acted as the intermediary brokerage house for this issuance.

The deal will support medium and long-term financing in local currency for micro, small and medium-sized enterprises (MSME) in Paraguay, a key segment for the country’s economy currently needing support.  From 2016 to 2021, IDB Invest has already financed 163,688 MSMEs in Paraguay, boosting access to MSME financing through financial institutions.

This is the second disbursement for this deal. The first one was disbursed in June 2020, when IDB Invest issued its second bond in Paraguay.

Ferrere advised IDB Invest on the transaction with a team including Carlos Codas (Picture) and Pamela Lezcano.

Involved fees earner: Carlos Codas – Ferrere Attorneys; Pamela Lezcano – Ferrere Attorneys;

Law Firms: Ferrere Attorneys;

Clients: IDB Invest;

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Author: Ambrogio Visconti