MercoPress. South Atlantic News Agency

CAF bond placement to strengthen Paraguayan agribusiness SMEs

“Through this record term placement, we continue to consolidate our presence in Paraguay,” CAF's Díaz-Granados said

The Development Bank of Latin America and the Caribbean (CAF) issued bonds worth ₲ 125 billion (approximately US$ 15.6 million) in Paraguay’s capital market, with a historic 5-year term and a 6.65% annual coupon rate. This is the longest-term issuance by a multilateral institution in Paraguay’s history and CAF’s third bond issuance in guaraníes, following a prior issuance of ₲ 197.5 billion.

These funds will finance small and medium-sized enterprises (SMEs) in the agricultural and agribusiness sectors to enhance their competitiveness and support Paraguay’s economic growth. The placement reflects growing investor confidence in Paraguay’s financial market and CAF’s commitment to deepening the local capital market, promoting sustainable development, and fostering regional integration.

The issuance, facilitated by CADIEM Casa de Bolsa, sets a new standard for multilateral organizations in Paraguay and supports debt sustainability and productive sector growth.

Paraguay's Ministry of Economy and Finance (MEF) underscored that this placement sets a new standard for a multilateral organization in the country nd will contribute not only to the development and maturity of the local capital market, but also represents CAF's commitment to strengthen the productive sector with broader financing horizons.

The initiative “demonstrates our firm commitment to the deepening of the local capital market and the long-term strengthening of the country's productive sector. Through this record term placement, we continue to consolidate our presence in Paraguay and expand the financing horizon for small and medium-sized enterprises, key players for sustainable and inclusive economic growth in the region,” CAF's Executive President Sergio Díaz-Granados said.

“This historic term issuance in the Paraguayan market reflects the growing confidence of investors in CAF and Paraguay, while demonstrating our firm commitment to deepening the local capital market and the long-term strengthening of the country's productive sector,” he added.