PANAMA CITY, March 15 Paraguay plans to issue a
10-year $300 million global depository note as soon as April to
capitalize on the success of its recent 10-year bond issue,
Central Bank President Jorge Corvalan told Thomson Reuters
service IFR on Friday.
Paraguay sold $500 million in 10-year international bonds in
January, capturing a yield on the low side of expectations for
what the government hailed as the most successful global credit
markets debut in history.
"When we had our roadshow for the dollar bond, we kept being
asked by investors how they could get into the local market,"
Corvalan said on the sidelines of Inter-American Development
Bank meetings in Panama.
"Although we have very open capital markets, the complicated
part is the custody issues, for which the GDN will be used to
bridge the gap."
GDNs give foreigners access to local currency debt markets
without necessarily setting up accounts in the country of
origin. The transactions are not governed by local laws.
Local currency guarani debt pays yields twice as high as the
debut global bond at around 9 percent.
Paraguay, one of South America's poorest nations, is
expecting a strong economic rebound this year and Corvalan said
he expects growth of 10 percent. The country is keen to tap
investor appetite for relatively risky but higher-yielding debt
from smaller emerging market issuers.