Tigo Paraguay Raises $77M in Landmark Local-Currency Bonds: A Game-Changer for Telecom Financing
According to Developing Telecoms, Tigo Paraguay, a subsidiary of Millicom, has raised approximately $77 million through a groundbreaking bond issuance in the local market. The bonds, denominated in Paraguayan guaranĂes (PYG), are the first of their kind to attract international investors via Global Depositary Notes (GDNs), allowing broader international trading while maintaining their local currency denomination. Led by Banco ItaĂş with support from its New York-based fixed income team, the seven-year bonds carry a 12% interest rate and form part of Tigo Paraguay’s broader debt restructuring program aimed at replacing USD-denominated liabilities with local-currency debt.
Inside Tigo Paraguay’s $77M Bond Issuance
This pioneering transaction marks a new milestone for Paraguay’s capital markets. The bond issuance totaled PYG5.11 billion and is part of a ceiling of PYG709.0 billion under Tigo Paraguay’s ongoing debt optimization strategy. The move aligns with Millicom’s efforts to manage foreign exchange risks for its subsidiary, considering the volatility of USD liabilities in emerging markets.
Earlier in 2025, Tigo Paraguay also secured $50 million through a separate local-currency bond issuance facilitated by IDB Invest. That financing was dedicated to bolstering network coverage, increasing data transmission speeds, and expanding infrastructure—a move that highlights the strategic role of network innovation in driving customer growth in competitive telecom markets.
Additionally, in October 2025, Tigo raised PYG220.0 billion via five-year bonds at a 10.85% interest rate, further demonstrating its active participation in Paraguay’s capital markets. The company’s ability to attract both local and international investors underscores increasing confidence in Paraguay’s business environment and its telecom industry.
What This Means for Paraguay and Telecom Industry
This development is a monumental step forward for Paraguay’s financial sector and telecommunications industry. By leveraging GDNs to engage international investors, the country elevates its financial profile on the global stage. For Tigo Paraguay, these efforts represent a critical strategy to alleviate financial pressures caused by net debt of $508 million reported at the end of Q3 2025. As Paraguay accounts for approximately 11% of Millicom’s group revenue, effective financial restructuring is essential to achieving long-term stability and growth.
Paraguay’s telecom market remains competitive, with players vying to capture increasing mobile and fixed broadband demand amid a growing middle class. Digital penetration is rising rapidly in the region, with active investments in network transformation being key to market dominance. The funds raised through these bonds give Tigo Paraguay a significant advantage in expanding its infrastructure and improving service offerings to maintain a competitive edge.
Moreover, this move disrupts traditional reliance on USD financing for telecom companies operating in emerging markets. It serves as a model for other operators to explore local currency debt instruments as a hedge against foreign exchange volatility, a growing concern given recent global economic uncertainties.
Future Outlook and Industry Insights
Looking ahead, Tigo Paraguay’s innovative bond issuance sets a precedent for the telecom industry—not just in Paraguay but across Latin America. By proving that international interest exists for locally denominated instruments, the operator paves the way for other large firms to follow suit. With its extensive history in providing digital services, Millicom is projecting confidence in Paraguay’s economic trajectory and capacity for modern financial mechanisms like GDNs.
Experts note that the broader Latin American telecom landscape is undergoing rapid transformation with increasing consumer demand for higher data speeds and 5G rollouts on the horizon. Chris Drake, an independent telecom analyst, commented, “By reducing USD liabilities, Tigo has created a more sustainable model that might shield them from the economic downturns many emerging markets frequently face.”
For competitors in Paraguay’s telecom space, such as Claro and Personal, Tigo’s network expansion backed by refreshed financing could increase competitive pressures. If executed effectively, Tigo Paraguay’s enhanced infrastructure and services may set new benchmarks for customer expectations in the region.
As Millicom continues refining its operations across key markets, the lessons learned from this bond issuance may influence its strategies in other regions, particularly where exchange rate stability is a recurring challenge.
Summing Up
Tigo Paraguay’s $77 million bond issuance leveraging local currency and GDNs represents a pivotal moment for the company, Paraguay, and potentially the wider telecom industry. By inviting international investors into the fold using an innovative financial mechanism, Tigo has spearheaded a shift that might redefine corporate financing strategies in emerging markets.
What are your thoughts on Tigo’s innovative financing approach? Could local-currency bonds become the new trend for telecom operators in emerging markets? Share your views in the comments below.
