Frigorífico Concepción of Paraguay issued bonds in NY under rule 144A / Regulation S for a value of USD 40 million. The issuer’s Bolivian subsidiary guaranteed the debt, in addition to certain properties in Paraguay and the accounts receivable from the issuer’s activities in Bolivia and Paraguay that were established as collateral in favour of investors. For this purpose, a guarantee trust was created in Paraguay with Finexpar as trustee and Wilmington Trust acting as beneficiary. Wilmington Trust was also the Trustee in the Indenture under New York law.
Bonds mature in 2025 and carry an interest rate of 11%. Oppenheimer acted as the underwriter for the operation.
Although issuances in international capital markets are not common for companies incorporated in Paraguay, this is the second debt offering from Frigorífico Concepción this year, being a “retap ” of the USD 100 million bond issue in January 2020.
