Bolivia Plans Five-Year Bond Sale as 62% Rally Lures Markets

bolivia is planning a five-year U.S.-dollar benchmark bond sale, returning to international capital markets for the first time in four years. The deal comes as the country tries to lock in fresh funding after a sharp rally in its debt and a March credit upgrade.

Initial price talks around 9% point to a costly reopening of the market, but one that could still give the government room to finance its budget. For holders of Bolivia’s bonds, the sale is a test of whether the recent rebound is enough to keep borrowing costs moving lower.

Deutsche Bank and Santander lead

The issue is being led by Deutsche Bank and Santander, with proceeds set for general budget purposes. That makes the transaction a broad financing move rather than a project-specific borrowing deal, and it puts the pricing directly on the state’s balance sheet.

Bolivia last accessed the international capital markets in 2022, so the return comes after a long stretch away from global investors. Rodrigo Paz has removed fuel subsidies and requested a US$3.300 billion program from the International Monetary Fund, steps that helped make investors more receptive to the country’s bonds.

Moody's lifts Bolivia one notch

Moody’s Ratings raised Bolivia’s credit rating by one notch in March and assigned a positive outlook. The country also made bond payments in March, another signal that helped steady trading after a difficult period for the sovereign.

Bolivia’s dollar bonds delivered more than 62% returns over the last year, according to a index. The market also reflects that shift: the spread on Bolivia’s bonds narrowed to 362 basis points (hundredths of a percent) over comparable U.S. Treasuries from more than 2,100 basis points a year earlier.

US$151,000 million in demand

US$151,000 million in hard-currency debt has already been sold by emerging-market sovereigns by 6 May, 38% more than in the same period of 2025. That backdrop gives Bolivia access to a busy issuance window, but its own price discussions near 9% show investors still want compensation for the country’s risk profile.

If the sale lands near those levels, Bolivia would secure new financing while leaving itself dependent on whether the market keeps rewarding the policy shift behind the rebound. The terms set now will shape how expensive its next borrowing step becomes.