The government issued $1.2 billion worth of debt securities in the international market, maturing in 2050 and with a coupon of 4.5%.
From a statement issued by the Ministry of Economy and Finance:
April 9, 2018.The Republic of Panama entered the international markets today throughthe issuance of a new Global Bond with maturity in 2050 for an amount of $1.2 billion and a coupon of 4.50%.
Arguing that the financial conditions and the term of the operation were not adequate, the Ministry of Finance has decided not to issue $1,5 billion in debt bonds in the local market.
The announcement was made by the Ministry of Finance through a Relevant Fact sent to the General Superintendence of the Securities Market.
As of January 31, 2018, the total balance of the Panamanian government debt totaled $23.384 billion, 7% more than was registered at the end of the same month in 2017.
According to data from the Ministry of Economy and Finance, between January 2017 and 2018, public debt rose from $21,852 million to $23,384 million, which is explained by growth of both external and domestic debt, which increased in equal proportion.
During the first semester, the government plans to issue up to $2.175 billion in debt securities through auction mechanisms and electronic windows in the local market.
According to the plan presented by the Ministry of Finance and the Central Bank, the debt figure "... contemplates issues through the mechanisms of auctions and electronic windows. This amount does not include loans made through internal debt placement contracts or debt swaps. In liabilities management, the plan is to continue swaps and reverse auctions."
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.
The Morales administration intends to continue with the issuance in 2018 of Treasury bonds aimed at small investors, with investment amounts ranging from between $3 thousand and $68 thousand.
The measure will give continuity to what was done in the previous year, when 35 small investors acquired debt bonds for $1.3 million at a rate of 6.25%.
The Costa Rican Stock Exchange is preparing a bond plan for companies that seek to finance renewable energy, agriculture, and waste management projects, among others.
The aim of the authorities at the National Securities Exchange (BNV), is to have the first issue of bonds of this type ready in the last quarter of 2018.The plan is to provide financing alternatives through the stock market for projects"... new or existing ones that qualify as green projects, that is to say, that contribute to mitigating the effects of climate change or adapting to them."
The Bank of Costa Rica has received approval to issue bonds and commercial papers in the Panamanian stock market for a total of up to $500 million.
At the end of September the Superintendency of the Securities Market of Panama (SMV) issued a resolution authorizing the Costa Rican state bank to issue bonds in dollars for up to $250 million and commercial paper up to the same amount.
The Ministry of Finance has announced that within six weeks it will issue an internal debt bond for a maximum of $1.5 billion, under the model of "placement contract".
From a statement issued by the Ministry of Finance:
The Ministry of Finance will be receiving bids for a minimum amount of $400 million in the local market, and the minimum issuance term will be five years.
The relevant fact published by the Ministry of Finance details that debt securities, which will pay out a fixed interest rate, will be sold through stock exchanges and banks in the local market, which can then be bought by foreign entities to sell them to international investors.
A tender is being launched in Panama for a service to issue driver's licenses and vehicle ownership cards, as well as issuance of cards for weights and dimensions, for a term of 10 years.
Panama Government Purchase 2017-1-03-0-99-LV-005303:
The Swiss bank UBS is preparing a $619 million issue to partially financeconstruction of Panama's Metro Line 2, managed by Odebrecht and FCC Construcción.
As early as February it was reported that, after Citibank's departure,UBS and Inbursa had expressed their interestin taking on financing for the project."The issuance of notes will be done through Sparc EM, used by the Swiss bank to do these types of financing operations."
The government is preparing a bill for the Assembly to authorize a debt issue on the international market next year.
The Ministry of Finance is considering raising money abroad in order to avoid pushing interest rates up in the local market.If the Legislative Assembly approves the bill, the government will turn to the international market to raise the 1.2 trillion colones that it needs to pay for domestic debt securities due next year.
On the local stock exchange Cuscatlán bank has issued five-year dollar investment certificates at a rate of 5.8%.
Elsalvador.com reports that "...This is the placement of the first tranche of the issue "CICUSCA$01", with which the bank is aiming to issue investment certificates worth a total of $150 million in order to obtain efficient financing through the El Salvador Stock Exchange.This amount will be issued at the appropriate time according to liquidity needs."
español
