Successful issue of $1.8 billion Panama bonds

The issuance of two global bonds in the international market with maturities of 2054 and 2035, was carried out by Panama through the Ministry of Economy and Finance (MEF). The first bond for a total amount of $1 billion with a maturity of 2054, and has a coupon and yield of 6.853%.

The second bond is due in 2035 for  $800 million, with a coupon of 6.40% and a yield of 6.161%. The operation is part of the Financing Strategy of the Ministry of Economy and Finance (MEF) for the General Budget of the State of the fiscal period 2023 and to execute operations of management of liabilities.

The entity explained that the financing needs of this year’s budget are estimated at $4,153 million and includes $2,178 million for the Central Government’s investment program and the rest for debt amortizations.

More than $11 billion of the 2023 budget will be for social services

Market reaction was positive, with offers totaling more than $9.5 billion and more than 260 investors from North America, Europe, Asia, Latin America, and the Middle East which demonstrates the confidence of foreign investors in Panama.

“Considering the great period of uncertainty that is being experienced by the situation of some banks in the United States and the possible rate increases by the United States Federal Reserve (FED) to control inflation, Panama has achieved a favorable issuance which ensures part of the financing of the 2023 Budget given the current market conditions”, says a statement from the entity.