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THE INFORMATION CONTAINED HEREIN lS SUBJECT TO CHANGE WITHOUT NOTICE. 2 Transaction Overview Issuer The Republic of Paraguay Transaction Reopening of 2023 Senior Unsecured USD Bonds Ratings Ba1 (stable) / BB (stable) / BB (stable) Offering Size USD 280 Million Format 144A / Reg S Amortization Bullet Use of proceeds Finance infrastructure and capital expenditure and to refinance a portion of its outstanding debt Governing Law / New York / Luxembourg Listing Joint Bookrunners 3 Paraguay at a Glance Paraguay: A Bright Spot in the Region… Strategically Located at the Centre of South America... ...Boasting A Solid Performance... 1 Capital Asunción Presidential, directly elected for a five-year term, Government with a Bicameral Congress Population 6.9 million Size 406,752 km2 Nominal GDP (2014) 1 US$30.8 billion GDP/Capita (2014) 1 US$4,462 Real growth rate (2014) 1 4.4% Public debt / GDP 1 17.6% Reserves / GDP 1 21.8% 1 Asunción Unemployment Rate 6.0% Paraguay Inflation rate 1 4.2% ...With Increasingly Relevant Global Presence... …And a Solid Upward Trend in Credit Ratings Sovereign Ratings: Ba1/BB/BB 2 Global Relevance: Ba1/BB+ Ba2/BB #1 Largest exporter of electricity in South America Ba3/BB B1/B+ B2/B #4 Exporter of soybeans #5 Exporter of beef B3/B- Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Moody's S&P Fitch Source: Ministry of Finance of Paraguay, Central Bank of Paraguay, United States Department of Agriculture, Fitch Ratings, Moody’s and Standard & Poor’s 1 As of December 31st, 2014, preliminary data 2 Based on LT Foreign Currency Debt; A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time 5 …Setting Itself Apart from its Regional Peers Real GDP ‘10 – '14E Average Growth Rate (%) Total Public Debt / GDP (2014E) 8% 70% 7,0% 60,8% 7% 60% 56,0% 5,8% 5,4% 5,5% 6% Average: 5.0% 50% 5,0% 4,8% 5% 4,6% 38,3% 4,2% 40% 35,2% 35,5% Average: 33.6% 4% 2,8% 30% 27,3% 3% 17,6% 19,1% 20% 2% 12,9% 1% 10% 0% 0% PAR PER URU BOL ECU COL CHI ARG BRZ CHI PAR PER ECU BOL COL ARG BRZ URU International Reserves / GDP (2014E) Inflation 2014E (annual average %) 50% 45,4% 37.7% 12%40% 40% 10% 24.4% 8,9% 30,8% Average: 8.5% 30% 8% 6,3% 21,8% 15.7% 5,8% 15,6% Average: 20.5% 6% 20% 4,2% 2.9% 3,6% 12,2% 4% 2,9% 3,2% 10% 6,0% 3,9% 2% 0% 0% BOL URU PER PAR BRZ CHI COL ARG ECU COL PER ECU PAR CHI BOL BRZ URU ARG Source: The Economist Intelligence Unit as of April 2015 Note: Paraguay figures are based on Ministry of Finance data 6 Investment Highlights 1 Paraguay’s economy continues to show strong growth with increasing diversification under a solid and stable environment 2 Open and dynamic external sector 3 Paraguay continues to promote and capitalize on attractive fundamentals for foreign investment Continued surplus in the balance of payments has resulted in growing 4 international reserves and a net creditor position Investment programs will accelerate Paraguay’s growth 5 trend mainly targeting infrastructure projects aimed at enhancing productivity 6 Disciplined fiscal policy promoting sustainable growth 7 Increasingly diversified debt profile with low rollover risk Economic growth and government social programs have contributed to 8 improve social welfare Monetary stability and low domestic interest rates supporting a solid and well 9 capitalized financial system 7 Paraguay’s Economy Continues to Show Strong Growth With 1 Increasing Diversification… Highlights Diversified Economy Across Sectors.