Paraguay

Bond markets continue to offer Latin American sovereigns tight pricing down the dollar curve, with Panama and Paraguay on Wednesday becoming the latest pair to price dual tranche deals. But with rates curves having steepened this month amid the expectation of higher rates in the long term, bankers are sensing that the 10 year is becoming the sweet spot on the maturity curve.

In what is likely to have been the final Latin America new bond issue of 2020, Paraguayan beef exporter Frigorífico Concepción added $21m to its January 2025s in a small tap on Friday.

Paraguayan beef exporter Frigorífico Concepción held calls with bond investors on Monday as it looks to tap its only international bond for the second time.

Paraguay’s largest commercial lender, Banco Continental, hopes its planned issuance of sustainability bonds will be an example for other issuers to follow, stating in its sustainability bond framework that its commitment to sustainable development is “inherently linked” to Paraguay’s historical dependence on the agriculture and livestock sectors.

Frigorífico Concepción, the Paraguayan beef exporter, raised $40m in bond markets on Wednesday after a three-day sales process.

Frigorífico Concepción, the Paraguayan beef exporter, could return to bond markets this week with a tap of its 10.25% senior secured notes maturing in January 2025.

Paraguay continued the relative rush of Latin American issuance on Thursday with a heavily demanded $1bn 11 year bond becoming the second high yield sovereign from Latin America in two days to tap bond markets to fund Covid-19 mitigation.

Telefónica Celular del Paraguay (TeleCel), the Paraguayan subsidiary of pan-EM telecoms group Millicom International Cellular, took advantage of a buzzing bond market to add $250m on Tuesday to a bond issued last April.

Latin American DCM bankers urged the region’s sovereigns to accelerate their funding plans after Paraguay notched a negative new issue premium in the sole sovereign trade of the week.

Latin America’s rising star Paraguay took advantage of low sovereign issuance from the region so far this year to tap existing 30 year bonds with a negative new issue concession, according to debt capital markets bankers.

Colombian natural gas distribution company Promigas and Rutas 2 and 7, a securitization to finance a road in Paraguay, brought life to an otherwise subdued week in Latin American primary markets on Tuesday.

Bonds issued by Colombian financial holding company Gilex and its subsidiaries widened on Tuesday as the lender’s proposed acquisition of BBVA’s Paraguayan bank triggered a downgrade review from Moody’s.