#bonds #Paraguay #Asunción #Paraguay Cash Offer #Tender Results

Paraguay Concludes Cash Tender Offer for Existing Bonds

The Republic of Paraguay recently made a significant announcement regarding its existing bond market. On February 25, 2025, the country detailed the aggregate principal amounts tendered for its bonds, following a cash tender offer made to investors. This offer, which was previously announced, aimed to purchase existing bonds from their registered holders, hereinafter referred to as 'Holders.'

Key Highlights of the Offer

The tender offer was open until February 24, 2025, and included a variety of bonds, notably the 5.000% Bonds due in 2026 and the 4.700% Bonds due in 2027. Upon expiration, Paraguay confirmed that the tender process was executed in accordance with the conditions laid out in the offer document dated February 18, 2025.

According to the announcement, the 2026 bonds saw a total of $284,434,000 tendered, representing 85.66% of their total principal amount. Meanwhile, the 2027 bonds had a tender amount of $350,491,000, which accounted for 70.10%. The purchase prices for each bond series were set at $1,005.00 per $1,000 principal and $997.50 per $1,000 principal, respectively.

Conditions for Acceptance

For the cash tender offer to proceed, it was necessary for Paraguay to simultaneously close one or more offerings of new global bonds (such as the “New Bonds”) sufficient to finance the cash offer. This condition highlights Paraguay's strategic approach in managing its debt while ensuring adequate funding for these transactions. The new bonds' offer was anticipated to finalize on terms favorable to the country; however, further details regarding the new bonds were to be communicated separately.

Updated Settlement Date

The expected date for settling the validly tendered and approved bonds has been updated to March 4, 2025, contingent upon meeting the offer's conditions. Holders of the accepted bonds will be eligible to receive the purchase price along with accrued interest accordingly.

Future Developments

As expectations mounted, it was communicated that prior to the settlement date, additional announcements would clarify several aspects including:

• - The Maximum Purchase Price for each bond series
• - The Tendered Aggregate Purchase Price for each series
• - The total principal amount of tendered bonds accepted
• - Any potential proration related to the tender process

This information plays a crucial role in providing transparency to investors and ensuring compliance during the offering timeline.

Involvement of Financial Institutions

In facilitating this intricate tender offer, Citigroup Global Markets Inc. and Itau BBA USA Securities, Inc. acted as Dealer Managers. Furthermore, Global Bondholder Services Corporation served as the depositary and information agent for the offer, highlighting the structured approach Paraguay is taking in managing its debt securities.

Important Notices

Investors were reminded that participation in the new bond offerings is subject to receiving and reviewing appropriate offering memoranda. The new bonds are targeted to qualified institutional buyers only, emphasizing Paraguay’s cautious stance towards regulatory compliance and investor classification.

Conclusion

In summary, the Republic of Paraguay's completion of its cash tender offer marks a significant milestone in its financial strategy, allowing for potential restructuring and the management of its existing debt. Stakeholders are advised to keep an eye on further communications for any new developments, particularly regarding bond settlements and the introduction of new financial instruments.