Panama manage to issue bonds on the international market with a margin of only 2.05% above the 10-year US Treasury benchmark.

The margin of 205 basis points over the 10-year US Treasury bond was even better than that achieved by other countries in the region with equal or better risk ratings, such as Colombia (BBB), Mexico (BBB +) and Uruguay (BBB), which in their 10-year term emissions were paid 245pbs, 210pbs and 245pbs, respectively.

From a statement issued by the Ministry of Economy and Finance of Guatemala:

The Republic of Panama ventured into the international capital markets through the issuance of new Global Bonds with a maturity of 12 years in the amount of $1 billion and a coupon 3 7/8%, announced the Minister of Economy and Finance, Dulcidio De La Guardia.

This transaction, along with emissions of bonds issued in 2014 (Global Bond 2024 – 4.0%) and 2015 (Global Bond 2025 – 3.75%), improves the yield curve of Panama’s government debt and allowed it to get margins better adjusted to US Treasury debt instruments.

Issuer / Bond — Ratings ———– Date ——- Spread —– Yield —– Coupon
Panama 2028 — Baa2/BBB/BBB —3/10/2016– —T+205 bps — 3.979%- —3.875%
Brazil 2026 — Ba2/ BB / BB+ ——3/10/2016 —- T+420 bps —- 6.125% —- 6.000%
Mexico 2026 — A3 / BBB+ / BBB+ —1/13/2016—T+210 bps— 4.165% — 4.125%
Uruguay 2027—- Baa2 / BBB /BBB- —10/15/2015 –T+245 bps — 4.475%— 4.375%
Colombia 2026— Baa2 / BBB / BBB— 9/21/2015 — T+245 bps —- 4.653%— 4.500%
Peru 2027— A3 / BBB+ / BBB+ — 8/18/2015 — T+195 bps — 4.150% — 4.125%