EM buyers drive Paraguayan zero coupon trade

Paraguay, road, bioceanico, LatAm
By Oliver West
09 May 2019

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.

On Wednesday, sole bookrunner UBS set initial price thoughts  for the 15.1 year bond to 5.75%, which counts as a direct obligation of the government of Paraguay.

Rated in line with the sovereign at Ba1/BB the issuing vehicle, Bioceanico Sovereign Certificate, was able to bring pricing into 5.375% on ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial