- The private sector arm of the IDB Group issues debt securities in guaranies to support access to financing for small and medium-sized enterprises
Asuncion, Paraguay—IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is launching its bond issuance program of up to 1 trillion guaranies by issuing its first bond in the Paraguayan capital market for an amount of 30 billion guaranies (equivalent to approximately $5 million).
The objective of this program is to finance private sector operations in Paraguay that require local currency and is part of IDB Invest’s strategy to contribute to the development of the capital markets of its member countries and to economic development through solutions adapted to their needs.
The resources of this issuance will be used to finance access to medium and long-term loans to small and medium-sized enterprises in the country through the financial institution Bancop (Banco para la Comercialización y la Producción S.A).
The bond, which has a fixed rate of 6.10 percent and maturity in 2023, has received a strong demand reflected in orders that exceeded 1.4 times the amount offered. According to the book managed by the Cadiem brokerage house in Paraguay, these orders came from a diversified base of investors, which include banks, insurance companies, and private and public mutual funds and pension funds.
Since 2016, IDB Invest has approved 27 transactions for more than $300 million in Paraguay, financing private sector activities that contribute to the country's development in areas such as manufacturing, small and medium enterprises, agribusiness and financial markets.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About the Inter-American Development Bank
The Inter-American Development Bank (IDB) is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.