(PanamaAmerica) Panama today made the first placement “successful” of approximately $ 500 million in bonds on the capital market in Japan, seeking to diversify its funding sources, reported an official source.
These bonds, known as “samurai” are backed Japan Bank for International Cooperation (JBIC, for its acronym in English), the Ministry of Economy and Finance (MEF) of Panama in a statement.The interest rate is 1.81%, semiannual and the settlement date is January 25, 2011.
The MEF said the issue was placed among qualified institutional investors in Japan, including central banks, insurers, regional banks and other financial institutions.
“This placement is the first broadcast in the capital market in Japan by the Republic of Panama,” said MEF.
The source said that although there is a demand for twice the amount announced, the issue size was set at 41.5 trillion yen (500 million dollars, which was the amount pre-agreed between the Republic of Panama JBIC).
“With this transaction,” added the MEF-the republic (Panama) manages to diversify its funding sources and successfully established as a credit profile in the Japanese market. ”
The marketing phase of the transaction began last November with the visit of the Panamanian Minister of Economy and Finance, Alberto Vallarino, Japan, where he met with investors and presented the macroeconomic outlook and the benefits of Panama for investment.
Last November, the MEF noted that the proceeds of this issue will be used primarily to refinance all of Panama 9.625% global bond maturing in February 2011 and $ 332 million to meet part of the government deficit in year 2011.