Published on 11/20/2019 in the Prospect News Emerging Markets Daily.
New Issue: Panama sells $1.3 billion 3.16% bonds due 2030, 4.3% bonds due 2053
By Marisa Wong
Los Angeles, Nov. 20 – The Republic of Panama priced $300 million of 3.16% global bonds due Jan. 23, 2030 and $1 billion of 4.3% global bonds due April 29, 2053 on Tuesday, according to FWP filings with the Securities and Exchange Commission.
The 2030 bonds priced at 102.799 to yield 2.834%, and the 2053 bonds priced at 113.18 to yield 3.607%.
The bonds (Baa1/BBB+/BBB) are a further issuance of, and will be consolidated to form a single series with, the outstanding $1.25 billion of 3.16% bonds due 2030 that were issued on July 23 and the outstanding $750 million of 4.3% bonds due 2053 that were issued on April 29, 2013, respectively.
BofA Securities, Inc. and Scotia Capital (USA) Inc. are the joint bookrunners for the SEC-registered bonds.
Proceeds will be used for general budgetary purposes.
| Issuer: | Panama
|
| Issue: | Global bonds, add-ons
|
| Amount: | $1.3 billion
|
| Bookrunners: | BofA Securities, Inc. and Scotia Capital (USA) Inc.
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 26
|
| Expected ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2030 bonds
|
| Amount: | $300 million
|
| Maturity: | Jan. 23, 2030
|
| Coupon: | 3.16%
|
| Price: | 102.799
|
| Yield: | 2.834%
|
| Spread: | 105 bps over 1.75% Treasury due Nov. 15, 2029
|
| Call option: | Prior to Oct. 23, 2029, make-whole call at discount rate of Treasuries plus 20 bps; after that, par
|
| Total issuance: | $1.55 billion, including $1.25 billion issued on July 23
|
|
|
| 2053 bonds
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| Amount: | $1 billion
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| Maturity: | April 29, 2053
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| Coupon: | 4.3%
|
| Price: | 113.18
|
| Yield: | 3.607%
|
| Spread: | 135 bps over 2.25% Treasury due Aug. 15, 2049
|
| Call option: | Make-whole call at discount rate of Treasuries plus 25 bps in whole or in part at any time
|
| Total issuance: | $1.75 billion, including $750 million issued on April 29, 2013
|
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