Tocumen Bond Issue Revived

After the cancellation, because of the Waked case, of the issuance of $625 million at 5.375%, Citigroup has announced a relaunch of the issue, and is now offering $500 million at 5.625%.

Friday, May 13, 2016

An article on Prensa.com reports that "... Tocumen, SA, a public company that runs the country's main airport, yesterday relaunched a bond issue with which it is aiming to raise funds to complete construction of its new terminal, T2 ... Last Tuesday an issue of $625 million to be sold on international markets with a coupon or interest rate of 5.375% was canceled."

"... A priori, according to the annex on prices for the new prospectus, the issue will amount to $570 million, with a coupon or interest rate of 5.625% and will mature in 2036. If these terms are finalised, Tocumen will end up getting less money and paying higher interest rates. "

The prospectus for the issue indicates that Tocumen S, A is willing to end its contracts with WISA, which stands accused in the Waked case, for the concession of commercial duty free spaces inside the airport.

Reuters reported that "... Citigroup rearmed on Thursday a bond sale issued by Panama's Tocumen Airport, after canceling the operation the previous day after the United States accused the Waked family, which owns the largest chain of duty free shops at the airport, of laundering drug money ... The US bank reduced the original amount of bonds maturing in 2036 to 500 million from 625 million, and increased the coupon to 5.625 percent from 5.375 percent."

More on this topic

Tocumen has Plenty of Financing

September 2016

Citing that it has other revenue options, the airport administrators have postponed until 2017 an issuance of $50 million outstanding from the $625 million which was authorized.

The first tranche of $575 million of the $625 million authorized by the government was placed in the international market in May this year, and the remaining $50 million will be put by until 2017.

Outlook Improved for Tocumen Debt

May 2016

Fitch Ratings has upgraded from negative to stable the outlook on the issuance of $650 million made in 2013, after another $575 million was successfully issued a few days ago.

In its statement, the rating agency noted that sanctions imposed by the Office for Assets Control of the United States Department of the Treasury on companies that are part of Grupo Waked Internacional (Wisa), for allegedly operating a money laundering scheme, will not have a material impact on the Tocumen's credit rating.

Tocumen Bonds Sale Canceled Because of Waked Case

May 2016

As a holder of concessions for duty free shops WISA contributes 7% of the revenues of Tocumen SA, and its inclusion in Clinton list has rattled investors.

An article in Prensa.com reports that yesterday "... the stock broker Citivalores ​​informed the Stock Exchange of Panama that the initial purchaser of the issue, Citigroup Global Markets, decided that the original conditions set out in the purchase agreement had not been met and voided the bond offer made ​​on May 4 and whose closing date was May 11."

Tocumen Issues $625 million at 5.375%

May 2016

On May 4 Tocumen International Airport SA completed a primary bond issue worth $625 million at an interest rate of 5.375%, with the Notes maturing in May 2036.

An article on Capital.com.pa reports that "...Fitch Ratings, in a statement issued on April 22 2016 stated that it is 'hoping to qualify the issuance of guaranteed debt by Tocumen International Airport (Aitsa) in 2016 for $625 million with maturation in 2036 at BBB (exp) and AAA (pan) with a stable outlook '. At the same time Fitch affirmed the ratings maturing in 2023 at BBB, AAA (pan) and AAA (slv) and maintained the negative outlook for all three ratings on the 2013 issue."

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