Cleary assists in Paraguay’s $500m debt offering
Cleary Gottlieb has assisted Citigroup Global Markets and Itau BBA USA Securities, as initial purchasers, in the issuance of $500 million 5.850% Republic of Paraguay (Paraguay) bonds due 2033, which have been admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.
The offer was launched and listed on 28 June 2023 and closed on 12 July 2023.
This offer was made simultaneously with a cash tender offer for certain outstanding Paraguayan bonds, which was launched on 28 June 2023, matured on 5 July 2023 and settled on 12 July 2023.
Citigroup Global Markets and Itau BBA USA Securities, represented by Cleary, acted as joint dealer managers for the tender offer. Gross Brown also advised these entities on a local basis.
This transaction also constituted the third liability management exercise by Paraguay since the enactment of Law No. 6638/20 in November 2020.
Paraguay used a portion of the net proceeds from the sale of the bonds to pay the purchase price of the outstanding bonds accepted in the tender offer. The remaining proceeds will be applied to partially finance the 2023 budget.
Gross Brown’s team was integrated by partner Sigfrido Gross-Brown, senior associate Pablo A. Debuchy Boselli, and associates Kamila Gimenez and Franco De Gasperi.
Cleary’s team included partners Juan Giráldez (pictured left) and Manuel Silva (pictured right), associate Ignacio Lagos, and international lawyer Josefina Griot. Counsel Matt Brigham and associate Andrew Wasilick advised on tax matters. All lawyers are based in New York, except Juan Giráldez who is based in Sao Paulo.
