UPDATE 1-Citigroup revives bond for Panama's Tocumen airport

jueves 12 de mayo de 2016 17:05 GYT

(UPDATES throughout)

By Paul Kilby and John Balassi

NEW YORK, May 12 (IFR) - Citigroup revived a bond sale for Panama's Tocumen Airport on Thursday after pulling the deal in the wake of money-laundering allegations against the owners of its largest duty-free shops.

In what has become a very complicated trade, the US bank has tweaked the bond's structure and is now marketing a US$500m-plus 2036 offering at a sweeter yield of 5.625%

That is wide to the final yield of 5.375% on the larger US$625m bond that priced on May 4.

That deal was pulled this week after the US Treasury named the owners of Grupo Wisa, the Waked family, as narcotics traffickers.

Several investors then dropped out, forcing the bank to make the unusual move of cancelling the post-pricing settlement, which was due to take place on Wednesday.

That Tocumen is returning so soon after the deal went south suggests that the lead underwriter is comfortable in generating sufficient demand under the new terms.

The new bond, which has a 15.9-year weighted average life, is expected to price as soon as Friday.   Continuación...