(Panama America) Panama ended today “successful” operation management to reduce liabilities by $ 521 million balance of the Global 2015 bond, which generates a 7.25% interest, with the idea of lowering your risk of refinancing, a source officer.
The transaction included an exchange of $ 258 million Global Bond 2015 with bondholders by issuing 249 million new paper that matures in 2036 at a yield of 4.937% and 6.70% coupon, explained in a statement Ministry of Economy and Finance of Panama (MEF).
Also won the cash purchase of 250 million Global 2015 Bond at a price of 119.44% market, including accrued interest.
For this operation was selected Goldman Sachs & Co. and Citigroup Global Markets Inc. as agents and underwriters structuring issue 2036, at market value at a fixed margin, said the statement.
These two processes of Global 2015 bond restructuring is completed with the auction of $ 400 million in Treasuries to 10 years in the domestic capital market, at face value and a weighted average price of 110.33% and average yield of 4.385%.
This first issue of Treasury Bonds 5.625% local coupon maturing on July 25, 2022 was triggered by the Market Maker Program of domestic public debt.
In the same bids were received amounting to 679 million, which represents 3.3 times the indicative amount of 200 million.
The operation succeeded in reducing the balance of the Global Bonds 2015, of 1,471 million dollars, 521 million and finance the cash needs of the Government.
Additionally, the ratio of domestic debt as a percentage of total debt increased from 15% to 18% or so.
Similarly, it was possible to reduce debt service by 2015 and improve the amortization profile of public debt by extending maturity and average from 12.4 to 13.0 years and 7.9 to 8.2 years, respectively, said the MEF.
According to the Government, improving the international debt debt contributes to the development of domestic capital markets and diversified funding sources in the country, minimizing risks associated with external macroeconomic conditions.
Also specifies that the operation improves the profile of public debt repayment by extending its maturity and average duration, without increasing it.
Panama’s public debt is around 14,000 million dollars and its relation to gross domestic product is just over 40%.