FINNEWS LATAM-Paraguay plans to sell bonds via Citigroup, BofA-source

The government of Paraguay hired the investment banking units of Citigroup Inc and Bank of America Corp to arrange meetings with investors that could lead to a bond offering, a source with knowledge of the situation told Reuters on Thursday.

The potential transaction comes in the same week that Moody's Investors Service raised Paraguay's government bond ratings to "Ba3" from "B1" - both below investment-grade - with a "stable" outlook. The credit rating company cited the strength of the country's finances, a build-up of international reserves and growing infrastructure investments.

Bankers, government officials and investors are scheduled to meet in London to discuss a potential transaction before the end of this week, said the source, who is not allowed to speak about the deal publicly.