Panama’s international airport issued in the international market debt securities expiring in 2048, with a coupon rate of 6% and a yield of 6.25%.

From the statement of Tocumen S.A.:

Panama November 8th, 2018. On Wednesday, November 7th, 2018, Tocumen International Airport successfully issued six hundred and fifty million dollars (US$650,000,000.00) in corporate bonds on the New York Stock Exchange, following rules 144-A and also registered on the Panama Stock Exchange.

In the transaction, offers were received from investors and buyers for one trillion five hundred and thirty thousand dollars (US$1, 530, 000,000.00), 2.3 times more than what was offered, which allowed the operation to be carried out at a coupon rate of 6.00% and a yield of 6.25%. These bonds issued by Tocumen expire in 2048.

The requirement to seek this 30-year financing is part of the financial strategy carried out by Tocumen International Airport to improve its financial condition and to line up its financial commitments according to the type of asset an airport has.

Rated BBB, positive outlook, by Standard & Poors and BBB, stable outlook by Fitch Rating, the Airport is in a solid financial condition and has a favorable and a growing business outlook. After this 30-year issue, the conditions of the other bonds issued in 2013 and their continuity in the stock market must be observed.

The General Manager of Tocumen Airport, Dr. Oscar M. Ramirez, expressed his approval of the transaction, since it allows Tocumen to be in a better financial position to meet the needs of air terminal expansion and for improvements to runways and taxiways.

Tocumen International Airport plans to begin operations in the new terminal in the first months of 2019 and thus is expected to increase passenger traffic through the HUB of the Americas and the arrival of new airlines.