Issuances registered between January and September 2016 exceed 60% of the total issuances registered throughout 2015, and projections are that the year will close with $7 billion traded in the local market.
The scandal generated from the leaked information about the firm Mossack Fonseca, "Panama Papers", and the questions about the lack of financial transparency that arose afterwards, do not seem to have affected the attractiveness of the stock market for providing finance to companies through the issuance of securities.
An announcement has been made that in the short-term auctions of securities by Panamanian State will no longer be made in the local market and instead will be carried out through the Bloomberg platform.
Given the lack of investment in technology on the part of Panama stock exchange, the government has announced that it will begin making the auctions using the Bloomberg platform. The will allow for more transparent transactions by the State.
The amount of trade between January and June this year represents 53% of total traded in the market during 2013.
In the month of June 2014 alone transactions in the securities market of Panama totaled $469.7 million, with the primary market, where new issues are made, being the most important, with 53% of the total traded.
"... In the first six months of the year the total cumulative volume of the market represents 53% of the proceeds from all of 2013. Whilst January to June $2,671.8 million was accumulated, from January to December 2013 the figure was $5,018.8 million. "
It is the biggest issue in Panama within the private sector authorized by the Superintendency of Securities of Panama for $470 million in total.
The General Bank was the structuring firm and main buyer of the bonds, the first two series were placed at interest rates of 6.25% and 6.75%.
The funds will be used to refinance "the balance of the existing debt contracted for $397.4 million with a syndicate of banks and originally used for the construction of the AES Changuinola hydro plant in Bocas del Toro ..." reported Capital.com.pa.
Grupo Toledano is to issue $45 million in corporate bonds to be used to settle debts with creditors and banks, and as working capital.
Capital.com.pa reports that "According to the prospectus published on the Panama Stock Exchange (BVP), the corporate bonds are divided into seven series that meet the following amounts: Class A-1, up to $5 million, Series A-2, up to $5 million, Series B, up to $15 million and the Series C, D, E and F together totaling $20 million. "
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.
On a day where $118.6 million was traded on the Panamanian Stock Exchange, the government placed $100 million in bonds at a yield of 4.38% and a price of 110.65%.
Up to May 31, 2012, the Treasury bond debt was $624.8 million, according to information available on the website of the Ministry of Economy and Finance. On the other hand private domestic debt stood at the same date at $1.9886 billion.
The BCIE has released $67 million simultaneously onto stock markets in Costa Rica, Panama and El Salvador.
Reflecting what can be achieved in terms of volume and attracting international investment, the American Economic Integration Bank has issued bonds in three stock exchanges simultaneously.
Investors came from all three countries, with Costa Rica being the market where the most bonds were placed, $31.6 million, followed by El Salvador with $22 million, and Panama, where $14 million were sold.
At the Panamanian securities market, the company sold $7.6 million worth of corporate debt.
This is the first public bond sale by Indesa Finance, Panamanian subsidiary of Indesa Holding.
“These bonds mature in three years, and pay 6.5% annual interest. The sale was approved by the National Securities Commission”, reported Laestrella.com.pa.
In 2009 the Panamanian securities market registered half the volume of issued securities of 2008.
Juan Martans, securities commissioner, considers that the year was 'very good', keeping in mind that they expected a very tough 2009, due to the international financial crisis.
"The number of foreign operators in the market increased in 2009, including stock brokers and investment advisers.