Arguing that there is a temporary need for liquidity in colons, on October 26 the Central Bank of Costa Rica decided to participate in the secondary market by buying two different series from the Ministry of Finance, with a maturity of 9 and 10 years.
On April 13, 2020, the Board of Directors of the Central Bank of Costa Rica (BCCR) authorized its Administration to participate in the secondary securities market of the Ministry of Finance and defined the conditions under which these transactions would be executed, with the objective of mitigating situations of systemic tension caused by temporary liquidity needs in colones, informed the monetary authority.
Treasury authorities announced that plans for this year are to negotiate with the Legislative Assembly for approval to issue debt in the international market, and if approved, the issuance would take place in 2021.
Last year the executive branch's plans were to issue $6 billion in Eurobonds, but the Legislative Assembly approved the issuance of only $1.5 billion, arguing that the amount proposed at the beginning was too high.
Because of its financial and competitive strength, the rating agency Fitch Ratings confirmed that the risk rating as an issuer of long-term debt is "A", with a stable outlook.
The ratings reflect an underlying asset that is critical not only for Panama, but also for international trade, as evidenced by its stable volume performance, solid competitive position and well-diversified cargo mix, the ratings company explained.
The Central Bank announced for June 17 two auctions of monetary stabilization bonds in the local market, for a joint value equivalent to $75 million.
From the Central Bank of Costa Rica statement:
The Central Bank of Costa Rica informs the national market that it will hold an auction of Monetary Stabilization Bonds next Monday, June 17, 2019, and that in this event will make available to the public the following standardized series, whose characteristics are detailed below:
Empresa de Transmisión Eléctrica de Panamá issued seven-year local market debt securities with a 3.85% interest rate.
Empresa de Transmisión Eléctrica S.A. (ETESA) made its first issue of corporate bonds in the Stock Market of Panama, for the sum of seventy-five million dollars ($75 million) to be used to finance investment projects included in the Expansion Plan of the National Interconnected System (PESIN) of 2018, said the institution in a statement.
The Empresa de Transmisión Eléctrica de Panamá issued debt securities for 30 years at a 5.125% interest rate.
The bonds have a deadline in May 2049, i.e. 30 years from the date of issue and will have a grace period on capital payments of 15 years, informed the institution.
On April 12, Panama's state-owned electric company began the marketing stage for the potential issuance of international bonds, which would be at least $500 million.
"Once the issuer's international risk ratings have been obtained and after several months of arduous preparation, we are ready to market among the most important investors in the United States, Europe and Latin America, our company's first long-term bond issue," explained Gilberto Ferrari, general manager of Empresa de Transmisión Eléctrica, S.A. (ETESA).
Empresa de Transmisión Eléctrica de Panamá was authorized to make one or more issues and reopen securities in international markets for up to $750 million.
The issuance will take place in the first half of 2019, will be listed in the U.S. Securities and Exchange Commission and in the Superintendence of the Securities Market of Panama, informed Empresa Eléctrica.
Banco Centroamericano de Integración Económica signed a loan contract with the FCC Consortium to finance the six-lane extension of the beach corridor in Panama, Section I: La Chorrera-Santa Cruz.
The project "Expansion to six lanes, Las Playas Corridor, Section 1: La Chorrera-Santa Cruz, which has an approximate length of 36.3 kilometers, and begins at the end of the Arraiján - La Chorrera highway and ends at the entrance to Santa Cruz (before the crossing over the Lagarto River)," was awarded in November 2017.
Because of fiscal uncertainty, in the first months of 2018, banks operating in the country reduced by 16% the amount invested in public debt securities in the local market.
Against the backdrop of doubts about the future of public finances in Costa Rica, it was reported that from January to September, 14 local public and private banks invested $3.190 million in government bonds.
On November 14th, Banpro Grupo Promerica issued $200 million in bonds on the international market for a six-year term under the 144A format.
The bank announced that the issuance was made by Promerica Financial Corporation (PFC), its main shareholder, and that the issue was structured by Bank of America Merrill Lynch and Credit Suisse.
Ramiro Ortiz Mayorga, chairman of the board and CEO of Promerica, explained to Elnuevodiario.com.ni that "...
The Central Bank of Costa Rica informed that on November 12th, it made auction Monetary Stabilization Bonds in Colones, for an amount equivalent to $8 million, at a gross interest rate of 9.51%.
From the statement of the Central Bank of Costa Rica:
The Central Bank of Costa Rica announces to the national market that it will hold an auction of Monetary Stabilization Bonds next Monday, November 12th, 2018, and that in this event it will make available to the public the following standardized series, the features of which are detailed below:
Panama's international airport issued in the international market debt securities expiring in 2048, with a coupon rate of 6% and a yield of 6.25%.
From the statement of Tocumen S.A.:
Panama November 8th, 2018. On Wednesday, November 7th, 2018, Tocumen International Airport successfully issued six hundred and fifty million dollars (US$650,000,000.00) in corporate bonds on the New York Stock Exchange, following rules 144-A and also registered on the Panama Stock Exchange.
In Nicaragua, the license of CrediFactor S.A. to offer securities to the public was revoked due to the difficulties the company is facing in paying for the securities.
The executive president of CrediFactor, Mauricio Pierson Stadthagen explained to Elnuevodiario.com.ni that "... The country's situation decelerated the rate of recovery of the portfolio they had been recording, which was funded with the issuance of bonds in which individuals invested. The factoring company did not take deposits from the public."