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High Interest Rates Delay Paraguay $3 Billion Wood-Pulp Mill

  • Paracel hired Goldman Sachs to arrange debt financing: CEO
  • Paracel will raise money for mill when borrowing costs fall
Paracel mill site 20 kilometers north of Concepcion, Paraguay.
Paracel mill site 20 kilometers north of Concepcion, Paraguay.Source: Paracel
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High global borrowing costs are postponing construction of the $3 billion mill at the center of a massive wood-pulp project in Paraguay.

Paracel SA’s interim chief executive officer, Per Olofsson, said he wants to see interest rates come down before he goes forward with financing the broad project, which is backed by a consortium of local and European investors.