NEW YORK, March 21 (IFR) - Paraguay is preparing fixed-income investor calls this week ahead of a possible 144A/RegS US dollar bond sale, sources said.
Calls will be coordinated through Bank of America Merrill Lynch and Itau and will take place on March 22 and 23.
On the calls will be Finance Minister Santiago Pena and the Central Bank Governor Carlos Fernandez Valdovinos.
The South American country, rated Ba1/BB/BB, was last in the market in April last year when it tapped the 4.625% 2023s at a yield of 4.15% through bookrunners Bank of America Merrill Lynch and JP Morgan.
Those bonds have been trading with a dollar price of 101.00-102.00 or a yield of 4.45%-4.28%, according to Thomson Reuters.
The government had sought approval in 2015 to raise up to US$740m in the foreign bond market this year amid hopes that a boost to its credit standing was on the cards.
In the international markets, the US dollar remains the country’s currency of choice partly because the government receives some US$700m in annual royalties from hydroelectric power plants, Pena told IFR in October.
Half of the proceeds from this year’s planned bond sale will be used to finance new investments, while the remainder will roll over existing maturities, he said. (Reporting By Paul Kilby; editing by Shankar Ramakrishnan)