IDB Invest Issues Its Fourth Domestic Bond in Paraguay to Support Small and Medium Businesses
IDB Invest issues its fourth bond denominated in Paraguayan guaranies, to finance access to medium and long-term local currency loans to small and medium-sized enterprises in the country through Sudameris Bank S.A.E.C.A (Sudameris). The issued amount was PYG 100 billion (rd. USD 15 million), with final pricing of 7.9%.
“This issuance confirms the ongoing demand of local investors for high quality issuances, especially in times of challenging financial market conditions,” states IDB Invest Chief Finance Officer Orlando Ferreira. “It also demonstrates IDB Invest’s mission and commitment to strengthen local capital markets and increase access to finance for small and midsized businesses.”
The allocation to some of the investors could promote the opportunity for secondary market trading, further developing local markets. CADIEM acted as the intermediary brokerage house for this issuance.
The deal will support medium and long-term financing in local currency for micro, small and medium-sized enterprises (MSME) in Paraguay, a key segment for the country's economy currently needing support. From 2016 to 2021, IDB Invest has already financed 163,688 MSMEs in Paraguay, boosting access to MSME financing through financial institutions.
This is the second disbursement for this deal. The first one was disbursed in June 2020, when IDB Invest issued its second bond in Paraguay.
This operation could contribute to two United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10).
About IDB Invest
IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $14.8 billion in asset management and 376 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Sudameris is currently the bank with the mayor growth in the Paraguayan financial system, with a loan portfolio of more than $1.7 billion and $2.3 billion in assets, operating in Paraguay more than 60 years ago. Traditionally, it has focused on the corporate and large business segments, and a few years ago it set itself the goal of strengthening its competitive position and advancing the diversification of its businesses by developing the SME segment. Sudameris is a comprehensive commercial bank, which aims to provide products and services that contribute to the sustainable development of its more than 110,000 clients.