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.