OFFERING MEMORANDUM REPUBLIC OF PARAGUAY US$600,000,000 2.739% Bonds due 2033 US$225,858,000 5.400% Bonds due 2050 The Republic of Paraguay (the “Republic” or “Paraguay”) is offering US$600,000,000 aggregate principal amount of its 2.739% bonds due 2033 (the “2033 Bonds”) and US$225,858,000 aggregate principal amount of its 5.400% bonds due 2050 (the “New 2050 Bonds”). We refer to the 2033 bonds and the New 2050 Bonds collectively as the “Bonds”. The 2033 Bonds will bear interest on their outstanding principal amount from the date of issuance, expected to be January 29, 2021, at a rate of 2.739%, payable semi-annually in arrears on January 29 and July 29 of each year, commencing on July 29, 2021 and ending on January 29, 2033. Principal on the 2033 Bonds will be repaid in three installments on January 29, 2031, January 29, 2032 and at maturity. The New 2050 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, commencing on March 30, 2021 and ending on March 30, 2050. Interest due on March 30, 2021 will include interest accrued from September 30, 2020. Principal on the New 2050 Bonds will be repaid in three installments on March 30, 2048, March 30, 2049 and at maturity. The offering of the 2033 Bonds and the offering of the New 2050 Bonds, each pursuant to this Offering Memorandum, are not contingent upon one another. For more information see “Description of the Bonds—General—Basic Terms.” The New 2050 Bonds will be a further issuance of, and will be consolidated to form a single series with the US$950,000,000 aggregate principal amount of Paraguay’s outstanding 5.400% bonds due 2050 issued on February 7, 2019 and January 21, 2020 (collectively, the “Original 2050 Bonds” and the New 2050 Bonds together with the Original 2050 Bonds, the “2050 Bonds”). After giving effect to the offering, the total amount outstanding of the 2050 Bonds will be US$1,175,858,000. The New 2050 Bonds will have identical terms and conditions, except for the issue date, issue price and the first interest payment date, as the Original 2050 Bonds and will vote as a single class of debt securities under the indenture with the Original 2050 Bonds. The Original 2050 Bonds and the New 2050 Bonds will have the same ISIN and CUSIP numbers and will be fully fungible with, the Original 2050 Bonds offered and sold in reliance on Regulation S. The Republic may redeem (a) the 2033 Bonds, in whole or in part, at any time or from time to time prior to the date that is three months prior to the scheduled maturity of the 2033 Bonds (“ 2033 Par Call Date”) and (b) the New 2050 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 New 2050 Bonds (the “2050 Par Call Date”, and each of the 2033 Par Call Date and the 2050 Par Call Date, a “Par Call Date”) , by paying the greater of 100% of the principal amount of the applicable Bonds being redeemed and a “make-whole” amount, in each case, plus accrued and unpaid interest. Beginning on the applicable Par Call Date, the Republic may redeem each series of 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 applicable Bonds to be redeemed, plus accrued and unpaid interest, if any, on the principal amount of the applicable Bonds being redeemed to the date of redemption. For more information see “Description of the Bonds—Redemption and Repurchase—Optional Redemption.” Each series of 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. Each series of 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 will 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.” Application will be made to list the Bonds on the Official List of the Luxembourg Stock Exchange and to have the Bonds trade on the Euro MTF Market of the Luxembourg Stock Exchange. See “Risk Factors” beginning on page 13 to read about important factors you should consider before investing in the Bonds. The 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 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 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 Bonds, see “Notice to Investors” and “Transfer Restrictions.” Public Price of the 2033 Bonds: 100.000% plus accrued interest, if any, from January 29, 2021. Public Price of the New 2050 Bonds: 121.863% plus accrued interest from September 30, 2020 to but not including January 29, 2021, and any additional interest if settlement occurs after January 29, 2021. Delivery of the 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 29, 2021. Joint Book-Running Managers Citigroup Itaú BBA Santander The date of this Offering Memorandum is January 20, 2021. -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 PRIIPs/IMPORTANT – UNITED KINGDOM RETAIL INVESTORS ...................................................................... iv CONVENTIONS ........................................................................................................................................................... v CAUTIONARY STATEMENT REGARDING PROJECTIONS AND OTHER INFORMATION ABOUT FUTURE EVENTS .............................................................................................................................................. vii SUMMARY .................................................................................................................................................................. 1 RISK FACTORS ......................................................................................................................................................... 13 USE OF PROCEEDS .................................................................................................................................................. 26 COVID-19 AND PARAGUAY .................................................................................................................................. 27 REPUBLIC OF PARAGUAY ..................................................................................................................................... 36 THE PARAGUAYAN ECONOMY ........................................................................................................................... 44 BALANCE OF PAYMENTS AND FOREIGN TRADE ............................................................................................ 82 MONETARY SYSTEM .............................................................................................................................................. 98 PUBLIC SECTOR FINANCES ................................................................................................................................ 117 PUBLIC SECTOR DEBT ........................................................................................................................................