Tigo Paraguay Raises $77 Million in Landmark Bond Issuance: What It Means for Telecom Financing

According to Developing Telecoms, Tigo Paraguay, the Paraguayan arm of Millicom, has successfully raised approximately $77 million through a groundbreaking bond issuance in the local capital market. This marks the first instance of a Paraguayan corporate issuer creating access for international investors via locally issued instruments. The bonds, denominated in the local currency guaraníes (PYG), were made globally accessible through Global Depositary Notes (GDNs), positioning this issuance as a model for internationalized local-currency financing.

Details Behind Tigo’s $77 Million Financing

The bond issuance, spearheaded by Banco Itaú with support from its New York-based fixed income division, totaled PYG5.11 billion with a seven-year maturity period and a 12% annual interest rate. This move is part of Tigo Paraguay’s broader debt restructuring initiative aimed at mitigating foreign exchange risks by substituting U.S.-dollar liabilities with local-currency debt. Notably, this is not the company’s first debt initiative in 2025. Earlier in the year, Tigo secured $50 million through a local-currency bond financed by IDB Invest and issued another PYG220 billion bond in October with a five-year maturity and 10.85% interest.

Tigo Paraguay is critical to Millicom’s overall operations, contributing approximately 11% of the group’s revenue. The company generated $143 million in revenue during Q3 2025; however, it remains a leveraged market with a net debt of $508 million as of the same period.

Why This Bond Issuance Matters for the Telecom Industry

The $77 million bond issuance is unique in its structure, notably attracting international capital while maintaining local currency denomination. This approach helps shield Tigo Paraguay from currency volatility and inflation – often significant pain points for telecom companies operating in emerging markets. The telecom industry is cash-intensive, with massive investments required for network upgrades, especially as new technologies like 5G and fiber broadband networks expand globally. Tigo’s strategic financing highlights a growing trend where telecom operators in emerging markets are diversifying their funding sources to stay competitive domestically.

This innovation could inspire other telecom firms in Latin America to explore similar methods to tap into global markets while reducing dependence on U.S. dollars. For example, competitors like Telefónica and Claro operating within the region could adopt comparable structures to improve capital efficiency and currency alignment.

The Future Outlook: Expert Perspectives

From an industry perspective, Tigo Paraguay’s latest bond offering signals an evolution in how telecom companies in developing countries are solving financing challenges. “This is more than just a financing win; it’s a framework for catalyzing international investor confidence in emerging markets,” says telecom analyst Laura Martínez. She also notes that by securing long-term funding at competitive rates, Tigo is not only managing financial risks but also positioning itself to expand its network infrastructure and improve services. Such maneuvers could strengthen customer retention in highly competitive telecom markets like Paraguay.

Furthermore, Tigo’s ability to execute complex, globally accessible transactions could enhance its credibility on international platforms, making Millicom a more attractive investment overall. If successful, this restructuring program – capped at PYG709 billion – could set a precedent for other emerging-market operators seeking to attract foreign investors more effectively.

Summary & The Bigger Picture

Tigo Paraguay’s $77 million bond issuance is a milestone not only for Millicom but also for the Paraguayan capital market’s ability to connect local initiatives with international investment opportunities. As the telecom sector navigates increasing demand for advanced networks and digital services, innovative financing tools like these may redefine growth trajectories in emerging regions.

Do you see such financing models transforming the global telecom landscape, particularly in other emerging markets? Share your thoughts in the comments.