IDB Invest reaches historic milestone with largest and longest-term local bond issuance in Paraguay

IDB Invest has achieved a significant financial milestone by completing its seventh bond issuance in the Paraguayan stock market. This transaction is the largest by volume and the longest in tenor ever issued by a multilateral institution in the country, raising an amount in local currency equivalent to 34 million dollars with a six-year maturity.

This extended tenor is crucial as it facilitates essential long-term financing for the private sector, supporting large-scale infrastructure and sustainable development projects. By issuing the debt in local currency, IDB Invest effectively mitigates exchange rate risk for its clients, allowing their long-term investments to be financed in the same currency as their operational revenues, a key practice for promoting market stability and depth in emerging economies.

This operation is a strong affirmation of IDB Invest’s sustainability strategy and commitment to developing resilient local capital markets in the Latin American region. While the bond is not explicitly labeled as a green bond, the proceeds are aligned with the institution’s mandate to boost economic development through private sector investment that supports the Sustainable Development Goals (SDGs) and is consistent with the Paris Agreement. The successful placement, listed and traded on the Bolsa de Valores de Asunción (BVA), attracted a wide base of local institutional investors, including including private and public pension funds, public and private entities, insurance companies, and mutual funds.