Panama issues another 1000 million dollars of debt

He People’s government issued by a Global bonus on the international market with a maturity of 2054 in the total amount of 1 billion dollars, with a coupon and yield of 6.853%.

According to Ministry of Economy and Finance (MPEG)reopening Global bonus due in 2035 in the total amount of 800 million dollarswith a coupon of 6.40% and a yield of 6.161%

The subject explained that this operation was part of UPCG financing strategy for him General state budget fiscal year 2023 and in turn perform liability management operations.

According to UPCG, the budget financing needs for 2023 are estimated at 4.153 million dollars and includes 2.178 million dollars for the investment program of the central government, and the rest for debt amortization.

Offers were received for more than 9.5 billion dollars and more than 260 investors from North America, Europe, Asia, Latin America and the Middle East. This shows the confidence of foreign investors in the country.

“Taking into account the great period of uncertainty that the situation of some banks in the United States is going through and possible rate increases from United States Federal Reserve (FED) To control inflation, Panama has achieved a favorable issue that provides part of the financing of the budget for the year 2023, taking into account the current market conditions,” said the MEF.

It also indicated that some banks considered Panama “a leader in the capital market in times of uncertainty”, also classifying it as a “reference country for the reopening of the market”, the latter referring to March 2020, when Panama was the first country to issued global bonds on capital markets during the coronavirus pandemic COVID-19.

Last year, the Government made a second purchase $484.95 million of Global bonus due September 2024 at a discount of 98.659%. A buyout offer was received with more than 500 million dollars in participation.

The first Global Bond repurchase operation in 2024 was for the amount of $412.93 million executed in June 2021. With this second operation, the outstanding balance of the 2024 Global Bond was $352.13 million.

The funds used for this liability management originate from the issuance of Global Bonds on November 14, 2022 at a rate of 6.4% and maturing in February 2035 in the amount of $1,500 million.