April 28, 2017 — Hughes Hubbard represented the Republic of Paraguay in connection with its first sovereign bond issuance since early 2016.
In the transaction, which closed on March 27, the Republic issued $500 million of 4.7 percent bonds due 2047. The transaction occurred amidst deep political turmoil, with strong opposition to the specific transaction by a minority party in the Senate. The opposition included threats of repudiation and letters to rating agencies by the party. Nonetheless, the transaction succeeded and was well oversold at a historically low interest rate.
The Republic of Paraguay intends to use the net proceeds to finance infrastructure and capital expenditures and to refinance a portion of its outstanding debt.
Citigroup Global Markets Inc. acted as sole underwriter for the transaction.
Federico Goudie, Gary Simon, Jennifer Graham, Ricardo Falcon and Shaun Haines worked on the deal. Andy Braiterman and Jeffrey Ng handled tax matters.