Panama issues US$1.8 billion global bonds in the international market

The Panamanian Government informed yesterday about the issuance of a global bond for US$1 billion in the international market, maturing in 2054, and about reopening a global bond for US$800 million, maturing in 2035, to partially finance the 2023 budget.

The Ministry of Economy and Finance informed that the first issue was with a coupon and yield of 6.853 percent, and the second with a coupon of 6.40 percent and a yield of 6.161 percent.

It pointed out that this operation is part of the Financing Strategy of the portfolio for the General Budget of the State for the fiscal year 2023 and simultaneously executes liability management operations.

The Panamanian Government explained that the financing needs for the 2023 Budget are estimated at US$4,2 billion and include US$2,2 billion for the Central Government’s investment program and the rest for debt amortizations.

The referred ministry described the market’s positive reaction to these proposals, indicating that offers were received for more than US$9,5 billion from more than 260 investors from North America, Europe, Asia, Latin America, and the Middle East.

He commented that considering the significant period of uncertainty that is being experienced due to the situation of some banks in the United States and the possible rate increases by the Federal Reserve of the United States (FED) to control inflation, Panama has achieved a favorable issuance that ensures part of the financing of the 2023 Budget given the current market conditions.

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