Paraguay

Paraguay tapped bond investors on Thursday to finance its portion of the transcontinental road, raising $732.3m of amortising notes with an average life of 8.9 years and using a zero coupon structure to reflect project payment flows.

A securitization that repackages Paraguayan government infrastructure financing is expected to be priced on Thursday after the bookrunner set initial price thoughts the day before.

Just one Latin American issuer has announced bond issuance plans as another day of market volatility had bankers pondering whether the favourable conditions that have prevailed almost uninterrupted since mid-January might be in danger.

A strong aftermarket performance from Millicom’s Paraguayan subsidiary the day after pricing showed that Latin American bond markets were hungry for new supply, despite growing concerns over Brazil.

Telefónica Celular del Paraguay (TeleCel), the Paraguayan subsidiary of pan-EM telecoms group Millicom International Cellular, returned to bond markets for the first time in over six years on Thursday.

Telefónica Celular del Paraguay (TeleCel), the Paraguayan subsidiary of pan-EM telecoms group Millicom International Celluar, held investor calls on Wednesday as it prepared to tap bond markets for the first time in over six years.

Paraguay wasp once again the rare consistent provider of good news for Latin America bond markets this week when it earned a credit rating upgrade from Fitch that puts it just one notch off investment grade status with three of the major rating agencies.

Banco Regional, the Paraguayan bank focussed on the country’s agricultural and livestock sectors, is planning to meet international bond investors as it looks to refinance an existing cross-border bond.

Landlocked South American country Paraguay is looking at the possibility of creating a sovereign wealth fund as part of a possible adjustment of its fiscal responsibility law, said deputy finance minister Humberto Colman Castillo.

Land-locked sovereign Paraguay sold the first cross-border bond from a Latin American issuer in exactly a month on Thursday, but though bankers said the deal was positive for the market, they did not think the slim concession was a sign of things to come.

Paraguay wrapped up two days of investor meetings on Wednesday, and the South American sovereign will have New York bond syndicate desks wishing it the best of luck if it announces a new deal on Thursday — as expected.

After weeks of speculation, Paraguay will finally hit the road next week as Lat Am syndicate bankers point out that spreads in the region have recovered well after a turbulent month.