The Republic of Paraguay launched a bigger-than-expected US $600m 10-year bond on Wednesday, its first dollar offering in almost a year which will finance new investments and refinance existing debt. Bank of America Merrill Lynch and Itau upsized the deal by US $100m and pulled in pricing by 37.5bp, launching the trade at a yield of 5% or tighter than initial price thoughts of 5.375%, a lead on the deal told IFR.
One investor that bought the bond put the new issue concession at 35-40bp, and said orders were in excess of US $3bn according to the latest details sent out to market participants by the leads. The bond is expected to price later on Wednesday, a day after the leads began marketing through calls involving Finance Minister Santiago Pena and Central Bank Governor Carlos Fernandez Valdovinos.