Panama eyes liability management ahead of US$3.2bn in maturities

sábado 9 de abril de 2016 11:55 GYT

By Paul Kilby

NASSAU, April 9 (IFR) - Panama is starting to explore liability management options ahead of US$3.2bn of debt maturities falling due over the next six years, the country's head of public credit told IFR on Saturday.

"We have been looking at liability management operations for various important maturities," Katyuska Correa de Jimenez, Panama's director of public financing, told IFR on the sidelines of the IDB meetings in the Bahamas.

"We are going to be more active in liability management than fresh money for financing the deficit."

Over the next few years, the country faces maturities including two local dollar-denominated bonds - US$993m of 5% 2018s and US$400m of 3% 2019s - as well as two international bonds - a US$1.5bn 5.20% 2020 and a US$344m-equivalent Samurai due in 2021.

The Central American nation has essentially covered its US$2.8bn of financing needs for 2016 after tapping the market in early March with a US$1bn 3.975% 2028 priced to yield 3.979%.

The government also plans to reopen its local 2019s on a regular basis for up to US$500m, while also taking out loans with multilaterals for between US$800m-US$900m.

This comes in the wake of the release of documents from Panama-based law firm Mossack Fonseca naming a number of world leaders and how they used shelters to avoid tax payments.

The so-called Panama Papers scandal has already led to the resignation of Iceland's Prime Minister - one of the people named in the leak.   Continuación...