Panama launches US$1.25bn 10-year bond
By Davide Scigliuzzo
NEW YORK, March 11 (IFR) - The Republic of Panama is set to raise US$1.25bn through the issuance of a new 10-year bond, which was launched on Wednesday at a final spread of 178bp over US Treasuries, according to market sources.
Final terms on the deal, rated Baa2/BBB/BBB, came at the tight end of guidance of 180bp area (+/-2bp) and inside initial price thoughts of 200bp area released earlier in the day.
Proceeds will be used for general budgetary purposes and for liability management transactions.
Bank of America Merrill Lynch and Deutsche Bank are the lead managers on the transaction, which is expected to price later on Wednesday.
(Reporting by Davide Scigliuzzo; Editing by Paul Kilby)
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