OFFERING MEMORANDUM US$450,000,000 REPUBLIC OF PARAGUAY 5.400% Bonds due 2050 We are offering US$450,000,000 aggregate principal amount of 5.400% bonds due 2050 (the “New Bonds”) of the Republic of Paraguay (the “Republic” or “Paraguay”) that will be a further issuance of, and will be consolidated to form a single series with, the US$500,000,000 aggregate principal amount of Paraguay’s outstanding 5.400% bonds due 2050 issued on February 7, 2019 (the “Initial Bonds”, and together with the New Bonds, the “Bonds”). The New Bonds will have identical terms and conditions, except for the issue date, issue price and the first interest payment date, as the Initial Bonds and will constitute a single series and vote as a single class of debt securities under the indenture with the Initial Bonds. The Initial Bonds and the New Bonds will have the same ISIN, CUSIP and Common Code numbers and be fungible, except that the New Bonds offered and sold in compliance with Regulation S will be issued and maintained under temporary ISIN, CUSIP and Common Code numbers during a 40-day distribution compliance period commencing on the date of issuance of the New Bonds. After such 40-day distribution compliance period, the New Bonds offered and sold in compliance with Regulation S will share the same ISIN and CUSIP numbers as, and will be fungible with, the Initial Bonds offered and sold in reliance on Regulation S. After giving effect to this offering, the aggregate principal amount of Bonds will be US$950,000,000. The New Bonds will bear interest on their outstanding principal amount at a rate of 5.400%, payable semi-annually in arrears on March 30 and September 30 of each year (each, an “Interest Payment Date”), commencing on March 30, 2020 and ending on March 30, 2050 (the “Maturity Date”). The interest due on March 30, 2020 will include interest accrued from September 30, 2019. Principal on the Bonds will be repaid in three installments on March 30, 2048, March 30, 2049 and at maturity. For more information see “Description of the Bonds—General—Basic Terms.” The Republic may redeem the Bonds, in whole or in part, at any time or from time to time prior to the date that is six months prior to the scheduled maturity of the Bonds (“Par Call Date”), by paying the greater of 100% of the principal amount of the Bonds being redeemed and a “make-whole” amount, in each case, plus accrued and unpaid interest. Beginning on the Par Call Date, the Republic may redeem the Bonds in whole or in part, at any time or from time to time, at the Republic’s option at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, plus accrued and unpaid interest, if any, on the principal amount of the Bonds being redeemed to the date of redemption. For more information see “Description of the Bonds—Redemption and Repurchase—Optional Redemption.” The Bonds constitute and will constitute direct, general, unconditional and unsubordinated External Debt (as defined herein) of the Republic for which the full faith and credit of the Republic is pledged. The Bonds rank and will rank without any preference among themselves and equally with all other unsubordinated External Debt of the Republic. It is understood that this provision shall not be construed so as to require the Republic to make payments under the Bonds ratably with payments being made under any other External Debt. The Bonds contain provisions commonly known as “collective action clauses”. Under these provisions, which differ from the terms of the Republic’s public external indebtedness issued prior to March 31, 2016, the Republic may amend the payment provisions of any series of debt securities issued under the indenture (including the Bonds) and other reserved matters listed in the indenture with the consent of less than all of the holders of the debt securities. For more information see “Description of the Bonds—Meetings, Amendments and Waivers—Collective Action.” We will apply to list the New Bonds on the Official List of the Luxembourg Stock Exchange and to have the New Bonds trade on the Euro MTF Market of the Luxembourg Stock Exchange. See “Risk Factors” beginning on page 10 to read about important factors you should consider before investing in the New Bonds. The New Bonds have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act (“Regulation S”)) unless the New Bonds are registered under the Securities Act or an exemption from the registration requirements of the Securities Act and applicable state securities laws is available. The New Bonds are being offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act (“Rule 144A”) or to non U.S. persons in accordance with Regulation S. For a description of certain restrictions on transfer of the New Bonds, see “Notice to Investors” and “Transfer Restrictions.” Public Price: 115.388% plus accrued interest from September 30, 2019 to but not including January 21, 2020, and any additional interest if settlement occurs after January 21, 2020. Delivery of the New Bonds in book-entry form will be made through the facilities of The Depository Trust Company (“DTC”) and its direct and indirect participants, including Euroclear Bank S.A./N.V. (“Euroclear”) and Clearstream Banking, Luxembourg, société anonyme (“Clearstream”) on or about January 21, 2020. Joint Book-Running Managers Goldman Sachs & Co. LLC Itaú BBA Morgan Stanley The date of this Offering Memorandum is January 22, 2020. -i- Paraguay has provided you only with the information contained in this offering memorandum (the “Offering Memorandum”). Paraguay has not authorized anyone to provide you with different information. Paraguay is not, and the initial purchasers (as defined under “Plan of Distribution”) are not, making an offer of these securities in any jurisdiction where the offer is not permitted. You should not assume that the information contained in this Offering Memorandum is accurate as of any date other than the date on the front of this Offering Memorandum. TABLE OF CONTENTS Page NOTICE TO INVESTORS ......................................................................................................................................... iii PRIIPs/IMPORTANT – EEA RETAIL INVESTORS ................................................................................................. iv NOTICE TO UNITED KINGDOM RESIDENTS ONLY ........................................................................................... iv CONVENTIONS ........................................................................................................................................................... v CAUTIONARY STATEMENT REGARDING PROJECTIONS AND OTHER INFORMATION ABOUT FUTURE EVENTS .............................................................................................................................................. vii SUMMARY .................................................................................................................................................................. 1 RISK FACTORS ......................................................................................................................................................... 10 USE OF PROCEEDS .................................................................................................................................................. 21 REPUBLIC OF PARAGUAY ..................................................................................................................................... 22 THE PARAGUAYAN ECONOMY ........................................................................................................................... 31 BALANCE OF PAYMENTS AND FOREIGN TRADE ............................................................................................ 66 MONETARY SYSTEM .............................................................................................................................................. 82 PUBLIC SECTOR FINANCES ................................................................................................................................ 100 PUBLIC SECTOR DEBT ......................................................................................................................................... 116 DESCRIPTION OF THE BONDS ............................................................................................................................ 131 BOOK-ENTRY, DELIVERY AND FORM.............................................................................................................. 145 TAX CONSIDERATIONS ....................................................................................................................................... 150 PLAN OF DISTRIBUTION ...................................................................................................................................... 155 TRANSFER RESTRICTIONS .................................................................................................................................. 163 SERVICE OF PROCESS AND ENFORCEMENT OF CIVIL LIABILITIES ......................................................... 166 OFFICIAL STATEMENTS AND DOCUMENTS ..................................................................................................