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