Panama Issues $2 Billion in the International Market

For the business sector, the issuance of $2 billion in bonds by the government is positive, since "it allowed the country to quote, for the first time in history, a bond for more than 20 years with an interest rate below 4%.

Thursday, July 18, 2019

On July 17, the Panamanian government was able to issue bonds for $1.25 billion with a 3.160% interest rate and maturity in 10 years (2030), and others for $750 million with a 3.870% rate and maturity in 40 years (2060).

This issuance was made during the first days of Cortizo's administration, who assumed in a context of economic slowdown in Panama, since in 2018 the country's Gross Domestic Product reported a 3.7% year-on-year growth, far from the increases of 11.3% and 9.8%, reported in 2011 and 2012, respectively.

From the CCIAP statement:

The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) welcomes the response of the international market to the issuance of sovereign bonds for the historic sum of US$2 billion, which were oversubscribed in a proportion of five times the amount to issue. In addition, this issue has a very competitive interest rate.

For the guild it is positive that the strong demand for the bonds issued allowed Panama for the first time in history to quote a bond for more than 20 years with an interest rate below 4.0%.

Read full statement (In Spanish).

More on this topic

Panama Issues $1.3 Billion in the International Market

November 2019

Bonds of $300 million maturing in 2030 and $1,000 million maturing in 2053 were issued at rates of 2.83% and 3.60%, respectively.

This is the second issue so far of Laurentino Cortizo's administration, since in mid-July the country issued $2 billion in the global market.

Costa Rica Issues $1.5 Billion in Eurobonds

November 2019

On November 12, the debt securities were sold in the international market, and at the end of the negotiation, bonds were issued for $1.2 billion maturing in 2031 and $300 million maturing in 2045.

The negotiation of the public debt issued by the government of Costa Rica in the international market closed at noon on November 12, and the yield for those maturing in 2031 was 6.25% and for those expiring in 2045 was 7.25%.

Panama Issues $1 Billion in Debt

April 2019

The Panamanian government issued debt securities in the local market at a 3.75% interest rate, with a seven-year term.

It is the first time that international investors agree to the purchase of a treasury note Baa1/BBB/BBB issued under Panamanian Law and listed on the Panama Stock Exchange, using the Euroclear platform, informed the Ministry of Economy and Finance (MEF), in a statement.

Dominican Republic Issues $1.822 billion in Bonds

February 2018

The Caribbean country issued $1 billion on the international market for a term of 30 years and at a rate of 6.5%, and another $822 million with a 5-year term and a rate of 8.9%.

Dominican authorities reported that the country issued for the first time in the New York market, a 5-year bond issue for $822 million, and another, also in dollars, at 30 years and for $1 billion.

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