Tigo Paraguay raises US$77m in landmark local-currency bond issue

Millicom’s Paraguayan unit Tigo has raised around US$77 million through a bond issuance in the local capital market, marking a first for a Paraguayan corporate issuer in attracting international investors via locally issued instruments.

BN Americas reported via local media that the bonds were issued in Paraguay's currency the guaraníes (PYG) and made accessible to overseas investors through Global Depositary Notes (GDNs), allowing the securities to be traded internationally while remaining denominated in local currency.

The placement, led by Banco Itaú with support from the bank’s New York-based fixed income team, totalled PYG5.11 billion and carries a seven-year maturity with an interest rate of 12%.

The transaction forms part of a wider debt restructuring programme at Tigo Paraguay, under which the operator aims to replace US dollar-denominated liabilities with debt issued in local currency. The programme has a total ceiling of PYG709.0 billion.

Earlier this year, Tigo secured US$50 million in financing from IDB Invest through a separate 10-year local-currency bond, with proceeds earmarked for network expansion, higher data speeds and broader coverage. In October, the company also issued bonds worth PYG220.0 billion with a five-year maturity and an annual interest rate of 10.85%.

Paraguay is Millicom’s fourth-largest market, accounting for around 11% of group revenue. The unit reported turnover of US$143 million in the third quarter of 2025 and remains one of the group’s more leveraged markets, with net debt of US$508 million at the end of the period.

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