The Panamanian government issued $550 million of sovereign debt in the international market, expiring in 2050 and with an average yield of 4.92%.

According to information from the country’s authorities, the resources collected will be used to partially finance the investment plan contemplated in the General State Budget for fiscal year 2018.

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From the press release of the Ministry of Economy and Finance:

October 19th, 2018. The Republic of Panama entered the international capital markets with the reopening of the Global Bond which expires in 2050 for a total of US$550.0 million and a weighted average yield of 4.915%.

Despite the global market volatility, and recent interest rate hikes by the US Federal Reserve, a spread of only 155 basis points over the 30-year US Treasury benchmark was obtained, as a reference.

This issue had a high participation of investors from North America, Europe, Asia and Latin America, reflecting the confidence of the international financial community in the macroeconomic conditions and credit risk that the Republic maintains. Demand was equivalent to 2.8 times the reference value.

The operation will partially finance the investment plan contemplated in the General State Budget for fiscal year 2018.