IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, issued its third bond denominated in Paraguayan guaranies, to finance access to medium and long-term loans to small and medium-sized enterprises in the country through Bancop. The issue amount was $25 billion guaranies (approximately USD 3.6 million), with a final pricing of 5.4%.
The strong demand was a result of a diversified investor base, reflected in orders that exceeded 3.25 times the amount offered. The first allocation comprised 32% to public entities, 32% to private banks, 32% to pension funds and 4% to other institutions, demonstrating IDB Invest’s success in achieving its mission to develop the local capital markets. Additionally, the allocation to some of the investors will potentially promote the opportunity for secondary market trading, further developing the local capital markets.
This is the second disbursement for this transaction, issued on October 29th. The first one was disbursed in 2018, when IDB Invest issued its first bond in Paraguay.
As part of its institutional response to support the economic recovery caused by the COVID-19 pandemic, IDB Invest is prioritizing the MSMEs sector in the region, boosting access to financing through of financial institutions.
About IDB Invest
IDB Invest, a member of the IDB Group, 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 USD 13.1 billion in asset management and 385 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.