Paraguay sells 1 billion dollars in 30-year sovereign bonds

Wednesday, August 6th 2014 - 00:12 UTC

Full article 9 comments

Paraguay sold 1bn (one billion) dollars in 30-year bonds on Monday in New York, its second international debt issue in less than two years. President Horacio Cartes said in a statement that the issue's 6.1% yield is unprecedented for the country, and that the proceeds will be used for highway, building and energy infrastructure, as well as agricultural production. Read full article

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Wallace
Who are these fools investing for 30 years at 6.1%. I would consider this charity rather than investment. “Combating poverty” as a use for the funds should ring all alarm bells.

Congratulations Paraguay.
Aug 06th, 2014 - 12:53 am - Link - Report abuse 0
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redp0ll
Interest rate seems very high. When was the last time Paraguay defaulted on its bonds? So three times over subscribed!
So long as infrastructure is prioritised the jobs will follow and that's the way to combat poverty
Aug 06th, 2014 - 03:03 am - Link - Report abuse 0
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tallison46
Life is good when you pay your bills....
Aug 06th, 2014 - 04:06 pm - Link - Report abuse 0
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Orbit
@2 agreed re interest rate; no doubt suffering from the “recalcitrant debtor” and serial defaulter to their south giving the neighbourhood a bad name confidence wise.
Aug 06th, 2014 - 04:34 pm - Link - Report abuse 0
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Don Alberto
Paraguay defaulted in 1874, 1892, 1920, 1932, 1986 and 2003.
Aug 06th, 2014 - 04:53 pm - Link - Report abuse 0
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redp0ll
Thanks for the info. The 1874 default is understandable as is the 1932 as the country was at war on both dates. But it looks pretty stable at present with very low debts.
In contrast to its neighbours I don't think Uruguay has ever defaulted though we've come close to it at times.
Aug 06th, 2014 - 06:03 pm - Link - Report abuse 0
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ChrisR
@ 6 redp0ll
“ I don't think Uruguay has ever defaulted though we've come close to it at times.”

The present idiot has until March (and his policy effects going forward) to make it a first.

Let's hope not.
Aug 06th, 2014 - 07:36 pm - Link - Report abuse 0
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yankeeboy
Pretty soon its going to be fashionable to have an Argentinian maid in Paraguay.
Aug 06th, 2014 - 10:41 pm - Link - Report abuse 0
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Don Alberto
@ 6 redp0ll

I am afraid I've got some bad news for you.

Uruguay has defaulted 8 times (competing with Argentine ? :), the first time was in 1887, the last one was in 1990

See for yourself in “List of most recent 77 countries which have defaulted”

http://www.gatewaytosouthamerica-newsblog.com/gtsa-general/argentina-general-en/argentina-lifestyle/soveriegn-debt-default-is-not-new-here-is-a-list-most-recent-77-countries-who-have-defaulted/
Aug 06th, 2014 - 11:59 pm - Link - Report abuse 0
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