By Will Caiger-Smith
NEW YORK, March 10 (IFR) - The Republic of Panama has set initial price thoughts on a new 12-year benchmark senior bond at Treasuries plus 212.5bp, taking advantage of continued strong sentiment towards the region.
Market participants have been anticipating the deal amid a rally in Latin American bonds which encouraged The Province of Buenos Aires and Cemex to tap the primary market on Wednesday.
“Panama has been looming...we were starting to wonder what they were waiting for so they obviously pulled the trigger which is good,” said a syndicate banker.
He put the new issue concession at around 30bp, working from Panama’s existing 2025s which were trading at a G-spread in the high 160bp area on Thursday morning.
“It’s a name that is well-liked and not super frequent,” said the banker.
Morgan Stanley and Credit Suisse are active bookrunners on Panama’s deal. (Reporting by Will Caiger-Smith; editing by Shankar Ramakrishnan)