Panama raises US$235 million in bond reopening

Panama raised US$235 million by reopening a 2015 bond. The price was 109.564% of face value, equivalent to a 5.533 percent yield and 158 base points over US Treasuries.

Wednesday, June 4, 2008

The price was the best Panama has ever achieved in international debt markets. US$1.148 billion of the 2015 bond remains outstanding.
The operation follows a policy in which Panama aims to lower its debt repayments so as to free up more money for social spending.

More on this topic

International Market Has Confidence in Panama

April 2013

While Costa Rica issues Eurobonds with a maturity of 30 years at 5.625%, Panama has issued theirs for 40 years at 4.40%.

The recent issuance of a global bond in the amount of $750 million with a fixed rate of 4.30% and maturity date of 2053, was described by analysts as a sign of confidence in Panama by international markets.

Panama Issues Global Bonds for $750 million

April 2013

Bids were received worth $4.5 billion for the issue placed on the international market, due in the year 2053 with a fixed coupon of 4.30% per annum.

From a press release issued by the Ministry of Economy and Finance (MEF) of Panama:

The Republic of Panama returned to the international capital markets today with a successful issue a new global bond in the amount of $750 million maturing in 2053 with a fixed coupon of 4.30% per year, making it the sovereign instrument issued with the longest term and at the lowest cost in the history of the Republic. Bids were received for over $4.5 billion, more than 5.8 times the indicative amount of $750 million. Investors from the United States, Asia, Europe and Latin America participated in this issue. The results of this new issue reflect the confidence of the international financial community in Panama and it is a recognition of the economic and fiscal performance of our country.

S&P confirms Panama's BB+ debt rating

June 2008

Standard & Poor's, the debt rating agency, has confirmed that Panama's long-term debt will remain at BB+. The government then announced the reopening of two global bonds due to mature in 2015 and 2029.

The rating agency said in a news release that the outlook for the debt is stable.

Low Risk Premium of Guatemala’s Sovereign Debt

November 2011

The Credit Default Swaps (CDS) for Guatemalan bonds is only 1%, confirming the perception of investors that the chance of a default is very remote.

History seems to be repeating itself, but in reverse. While developed countries, especially those in Europe, are struggling to find a solution to the debt crisis, Latin American countries are enjoying relatively stable conditions, especially in the sphere of international finance.

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