The historic placement of 197.5 billion guaraníes, the largest ever made by a multilateral institution in the country, will strengthen financing for small and medium-size Paraguayan companies and contribute to the development of the local capital market.
Asunción, Paraguay - December 4, 2024. CAF - development bank of Latin America and the Caribbean has achieved a record by issuing and placing a historic figure in the Paraguayan capital market for a total amount of 197.5 billion guaraníes (PYG), a 4-year term and a coupon of 6.50% per annum. This is the largest issue by a supranational institution in the country's history.
"This historic issuance in the Paraguayan market reflects the confidence of investors in CAF and in Paraguay, while demonstrating our firm commitment to the development of the local capital market and the strengthening of the country's productive sector. Through this record placement, we continue to consolidate our presence in Paraguay and expand financing opportunities for small and medium-sized enterprises, key players for sustainable and inclusive economic growth in the region," said Jorge Srur, CAF's Southern Regional Manager and Representative in Paraguay.
This placement, which is also the longest term placement made in 2024 by a multilateral organization, not only contributes to the development of Paraguay's capital market, but also represents CAF's commitment to strengthen the country's productive sector.
This is CAF's second issuance under its guarani public debt issuance program, reaffirming its role as a strategic ally of Paraguay's economic development through the issuance of bonds in local currency, which not only responds to the financing needs of the Paraguayan market, but also improves maturities, interest rates and, therefore, the competitiveness of companies. The proceeds will be used to finance strategic initiatives by small and medium-size companies to improve their competitiveness in productive sectors of the Paraguayan economy.
The issuance, which has been received with 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 played a key role as an intermediary brokerage firm in this historic issue, facilitating the process and ensuring a successful placement in the capital market.
With this placement, CAF continues channeling resources to promote sustainable development and regional integration for the timely provision of multiple, high value-added financial services to clients in the public and private sectors of its member countries by financing projects to promote social inclusion, improve the productivity and competitiveness of economic sectors, develop economic and social infrastructure, and support the physical and border integration of the region, among others.
About CAF
The mission of CAF, Development Bank of Latin America, is to promote sustainable development and regional integration by financing public and private sector projects, providing technical cooperation and other specialized services. Established in 1970 and currently made up of 22 countries -20 from Latin America and the Caribbean, together with Spain and Portugal- and 13 private banks, it is one of the main sources of multilateral financing and an important generator of knowledge for the region. More information at www.caf.com
CAF, Strategic Communications Department, prensa@caf.com
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