As part of the investment financing strategy of the General State Budget 2024

February 22, 2024, the Republic of Panama, through the Ministry of Economy and Finance (MEF), successfully issued three Global Bonds on the international market, with maturities in 2031, 2038 and 2057, for a total amount of US$3.1 billion, at an average weighted coupon rate of 7.79%.

For this operation it generated demand for more than 300 investment accounts, with just over 40% of them from the United States, just over 30% from Europe, as well as from the Middle East and Asia, for an amount of more than US$19 billion, which represents more than 6 times the amount announced. This demonstrates the confidence of foreign investors in the performance and prospects of sustainable growth of the Republic of Panama, as well as the fulfillment of its financial obligations.

This important demand allowed to issue what is stipulated within the financial programming for the year 2024 and efficiently manage the maturity profile of the Republic; resulting in the issuance of US$1,100 million with coupon 7.50%, with expiration in 2031; US$1,250 million coupon 8.00%, with expiration in 2038 and US$750 million with coupon 7.875%, with expiration in 2057.

This operation reflects the result of a two-day previous work of “Roadshow”, with very productive meetings with more than 115 institutional investors from different parts of the world.

With this issue in the international capital market, Panama achieves better than expected financial conditions, in a context of high rates and global uncertainty, with an increase in FED rates in the last 3 years of more than 500 pbs.

This operation is an important part of the Financing Strategy planned by the MEF, based on the General State Budget of fiscal validity 2024. These funds will be used to finance State investments and the payment of amortizations.