The Negotiable Commercial Securities (VCN by their initials in Spanish) will be issued in three series with terms of one year and will have an interest rate of 7% per annum for the first series, which was released on April 30 in the amount of $2 million.

"100% of the funds from this issuance will be used as working capital to increase the loan portfolio of financial company's fleet and products. They will be increased in Panama, Guatemala, El Salvador and Honduras ", reported Laestrella.com.pa.

Although the issue will be in the Panamanian market, it will be registered in other jurisdictions such as Nicaragua.

Source: laestrella.com.pa

More on this topic

Panama: In 2013 There Will be $1.5 billion in Issued Securities

May 2013

With the industrial sector leading the way, Panamanian companies are increasingly going to the local stock market for their financing.

"According to the registry of the Superintendency of Securities Market (SMV), up to early May there were $440 million in securities belonging to different companies, and another $1.033 billion were in the process of being registered," noted an article in Laestrella.com.pa.

Low Cost Financing in Panama

October 2012

In recent years there has been a clear reduction in interest rates of local securities, including short, medium and long term bonds.

Statistics from the BVP (Panamanian Stock Exchange) indicate that as of September 30 of this year, the amount of corporate bonds in circulation totalled $4.3317 billion and negotiable corporate securities (VCN in Spanish, a short-term instrument) worth $349.7 million.

Cabcorp Bottling Company Issues Bonds for $150 million

February 2012

The Guatemalan company Central America Beverage (Cabcorp) will release bonds worth $150 million on the U.S. market next week.

For the second time the company is to issues securities in international capital markets. The first time the issuance, rated BB, Ba2 and BB + by the rating agencies Standards & Poors (S & P), Moody's Investors and Fitch Ratings respectively, was acquired by Citigroup Global Market Inc.

Public offering of BICSA bonds for $100 million

August 2008

The Panama branch of the International Bank of Costa Rica (BICSA) has made a public offer of corporate bonds worth $100 million.

The listing and negotiation of these bonds has been authorized by the Panama Stock Exchange (BVP) and the National Stock Commission of Panama, however this authorization does not imply a recommendation or opinion of these stocks or the issuer, indicated a press release from the BVP.