Participation in the construction of the Metro Line Three and the third bridge over the Panama Canal could be undertaken through the International Cooperation Agency of Japan.
Hiroaki Isobe was, Japanese Ambassador to Panama, said there is interest from that country in financing the construction of Metro Line Three and a third bridge over the Canal.
The facts seem to bear out what was said in 2009 -according to WikiLeaks- by the U.S. ambassador, who described Sacyr as "a bankrupt company sustained only by the Spanish government."
The dialogue regarding the cost overruns in the construction of the canal expansion project between the Panama Canal Authority (ACP) and the consortium Grupo Unidos por el Canal (GUPC)-initiated by the intervention of the Spanish Minister of Development- has been interrupted, and it is not longer the Spanish group Sacyr the spokeshead but instead it is now the other majority company in the Consortium, Italy's Impregilo, which is asking - via the media- for $1 billion from the ACP, while keeping up its threat to stop the work.
The European Investment Bank is looking to fund new infrastructure projects such as the Metro Line 2 and a new bridge over the Canal.
From a press release issued by the Ministry of Foreign Affairs in Panama:
A delegation from Banco Europeo de Inversiones (EIB), led by its chairman, Werner Hoyer, and Vice-President Magdalena Álvarez Arza, has met with the Foreign Minister, Fernando Nunez Fabrega, in order to jointly assess the possibility of funding new infrastructure projects in the country.
In a counterproposal to the $100 million offered by ACP, the consortium constructor is calling for an advance of $400 million and a long-term agreement.
The proposal by the Panama Canal Authority (ACP) to make a joint contribution of $283 million and avoid suspension of the construction of the third set of locks has not convinced the representatives of Grupo Unidos por el Canal (GUPC).
The ACP has made a proposal to the construction consortium to bring together the necessary resources to continue the work while the claim over cost overruns is being resolved.
From a statement from the Panama Canal Authority (ACP):
ACP proposal would ensure co-injection of $283 million to the project
• ACP Proposal
Releasing to GUPC $100 million of the contract (under guarantee against GUPC).
A $104 million loan from Corporación Andina de Fomento will allow the creation of a tender for the construction of new collectors in Juan Diaz and San Miguelito.
This was explained by the health minister, Javier Diaz in an article in Elsiglo.com: " ... the new loan will be used for the construction of additional works and to complement the Phase 1 of the wastewater treatment plant, interceptor tunnel and interconnection system."
On December 4th Fitch Ratings will hold a conference entitled 'Challenges and Opportunities for Structured Finance and Infrastructure in Central America and the Caribbean.'
Securitization of Assets, an Option for Capital Markets in the Region, is one of the subjects to be discussed in the event's agenda. Participants will include Marielena Garcia, SVP of Investment Banking at MMG Bank Corp, Alberto Gutierrez, president of Titularizadora Colombiana, John Rauschkolb, General Manager La Hipotecaria and Diego Torres, vice general manager of BHD Valores Puesto de Bolsa.
IFC, a member of the World Bank Group, will provide a loan to Banco Delta for lending to micro and small entrepreneurs in Panama.
From a press release by the International Finance Corporation (IFC):
IFC, a member of the World Bank Group, has awarded to Banco Delta SA the largest microfinance institution in Panama, a five-year loan for $6 million to support micro and small entrepreneurs who have little access to formal financial services.
Vuelos Económicos Centroamericanos S.A.'s project will have the financial support of Alba Petróleos.
This was confirmed by the principal advisor to Alba Petróleos, José Luis Merino. "Alba has received the group of businessmen behind the possible airline, who have requested financial support to study the current context of aviation and decide on their entry," said Merino.
The company which manages the main international airport in Panama now has a borrowing limit of $650 million.
From a press release from the Government of Panama:
The Cabinet gave the green light to amending Cabinet Resolution No. 168 of December 18, 2012, which authorizes Aeropuerto Internacional de Tocumen, S. A. to have access to various sources of local and international funding, funds which will be used for the expansion of the North and South terminals (new cargo area), land purchase from the University of Panama (UP) and payment of loans.
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.
The Nicaraguan financial company Finnancia Credit is to issue commercial securities in the amount of $5 million on the Panamanian market.
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.
The International Finance Corporation has shown interest in both funding the bi national project and expanding the Panamanian electricity transmission network.
This was announced by Roberto Albisetti, general manager of the International Finance Corporation (IFC) for Central America, who noted that energy demand in Panama and the region will double in the next few years and that interconnection projects are an important step in regional integration .
While Costa Rica issues Eurobonds with a maturity of 30 years at 5.625%, Panama has issued theirs for 40 years at 4.40%.
The recent issuance of a global bond in the amount of $750 million with a fixed rate of 4.30% and maturity date of 2053, was described by analysts as a sign of confidence in Panama by international markets.
According to the financier Alvaro Naranjo "to be able to raise funds in the long term is good for any issuer.
Bids were received worth $4.5 billion for the issue placed on the international market, due in the year 2053 with a fixed coupon of 4.30% per annum.
From a press release issued by the Ministry of Economy and Finance (MEF) of Panama:
The Republic of Panama returned to the international capital markets today with a successful issue a new global bond in the amount of $750 million maturing in 2053 with a fixed coupon of 4.30% per year, making it the sovereign instrument issued with the longest term and at the lowest cost in the history of the Republic. Bids were received for over $4.5 billion, more than 5.8 times the indicative amount of $750 million. Investors from the United States, Asia, Europe and Latin America participated in this issue. The results of this new issue reflect the confidence of the international financial community in Panama and it is a recognition of the economic and fiscal performance of our country.