FERRERE successfully advised IDB Invest – Inter-American Investment Corporation – on a landmark bond issue in Paraguay, one of the country’s most important financial transactions in the year.
The transaction involved Series 1 under the Global G4 Bond Issuance Program, for a total of PYG 240 billion (USD 33.99 million) at 6 years, with an annual rate of 7.40%. It is a landmark issue is a landmark issue as the longest term bond ever issued by a multilateral development bank in Paraguay. The funds attracted will be allocated to satisfying demand for local currency (guaraníes) by clients of IDB Invest in Paraguay.
The issue not only underscores FERRERE’s vast experience in the Paraguayan regulatory environment, but also reinforces the firm’s leadership position in securities issues and its ongoing collaboration in developing the country’s capital market.
Through their joint work and strategic vision, IDB Invest has achieved issuance of a total of PYG 660,000 million (USD 93.22 million) through its different registered programs, reflecting its sustained trust in FERRERE’s advice.
In an official announcement, James Scriven, CEO of IDB Invest, highlighted the strategic importance of financing in local currency, a practice they have adopted in the last five or six years. This strategy allows companies to finance in the same currency as their income. He noted that for several years IDB Invest has been issuing on the Paraguayan Stock Exchange in order to lend in local currency.
The FERRERE team was led by partner Carlos Codas along with associate Kristel Duarte.