Paraguay operator issues US$400mn in bonds for bioceanic highway

Highway concessionaire Corredor Vial Oceanico, which is in charge of the first stretch of Paraguay’s bioceanic corridor, issued US400mn in bonds in the international market to finance the turnkey project, for which construction began in February.

The operation is the first by a private issuer to finance an infrastructure project in Paraguay, and is expected to cover 100% of the estimated 2.3tn guaraníes (US$368mn) capex.

The country’s finance minister Benigno López said, according a press release, that the operation will open the doors for other companies to seek infrastructure financing in the international market.

Works include repaving a 277km stretch between the municipalities of Loma Plata (Boquerón department) and Carmelo Peralta (Alto Paraguay), and building four bridges. Works are expected to be finished by May 2022.

Two more sections of the corridor, entailing total investments of US$800mn and works on 573km between Cruce Centinela (Chaco department) and the town of Pozo Hondo (Boquerón) are expected to be tendered in 2020, also under the turnkey model.