The Republic of Panama, through the Ministry of Economy and Finance (MEF), issued a Global Bond on the international market with a maturity of 2054 for an amount of $1 billion, with a coupon and yield of 6.853%.

The Global Bond was also reopened with maturity in 2035 for a total amount of $800 million, with a coupon of 6.40% and a yield of 6.161%.

The market reaction was positive, since offers were received for more than $9.5 billion and more than 260 investors from North America, Europe, Asia, Latin America and the Middle East. This demonstrates the confidence of foreign investors in the country.

This operation is part of the Financing Strategy of the Ministry of Economy and Finance (MEF) for the General State Budget of fiscal validity 2023 and in turn to execute liability management operations.

The financing needs of the 2023 Budget, are estimated at $4,153 million and includes $2,178 million for the investment program of the Central Government and the rest for debt amortizations.

Considering the great period of uncertainty Federal of the United States (FED) to control inflation, Panama has achieved a favorable issuance that ensures part of the financing of the 2023 Budget given the current market conditions.

Some banks have considered Panama as a “leader in the capital market in times of uncertainty,” they also classify it as “a reference country to reopen the markets,” the latter referring to March 2020, when Panama was the first country to issue global bonds in the capital markets during the COVID-19 pandemic.