The government issues bonds to finance the budget for 2023

The Republic of Panama, through the Ministry of Economy and Finance (MEF)he made issuance of Global Bonds on the international market maturing in 2054 in the aggregate amount of $1,000 million, with a coupon and yield of 6.853%.

Reopening Global bonus due in 2035 for a total amount of $800 million, with a coupon of 6.40% and a yield of 6.161%

This operation is reported to be part of UPCG financing strategy for the general state budget for fiscal year 2023 and, in turn, to carry out liability management operations.

The needs of financing of the Budget for 2023are estimated at $4.153 million and include $2.178 million for the central government’s investment program and the remainder for debt amortization.

The market reaction was positive, as offers for more than 9.5 billion dollars arrived, and more than 260 investors from North America, Europe, Asia, Latin America and the Middle East.

He MEF points out that what happened shows the confidence of foreign investors in the country.

Given the great period of uncertainty that is passing due to the situation in which some find themselves banks in the United States and possible rate increases by the United States Federal Reserve (FED) to control inflation, Panama achieved a favorable release that provides part of the financing of the 2023 budget given current market conditions. Some banks consider Panama “a capital market leader in times of uncertainty.”

It is also classified as a “benchmark country for the reopening of markets”, the latter referring to March 2020, when Panama was the first country to issue global bonds in the capital markets during covid-19 pandemic.