Central America’s largest banking group, Panama-based Grupo Banistmo, has denied rumors that it is to be bought by UK bank HSBC. Banistmo was commenting on local newspaper reports that a sale was imminent. In February, Banistmo bought a 53.7% stake in El Salvador’s Inversiones Financieras Bancosal. And it is planning to enter the Guatemalan market by 2007. HSBC meanwhile has been on something of a spending spree in Latin America. Earlier this year, it agreed to buy the Argentine unit of Italy’s BNL for $155 million and the Paraguayan assets of Lloyds TSB for $15 million. It has also made an application to set up operations in Peru.
Category: Panama
Posted inMagazine
Building Boom
Favorable interest rates and low prices are helping fuel a housing construction bonanza in Panama. But is the boom turning to a bust?
Posted inMagazine
Designs on Growth
Panama’s President Martín Torrijos is implementing market reforms that can also meet the needs of the poor and unemployed. Now he needs to strengthen the country’s frayed social fiber.
Posted inMagazine
Fight for Market Share
Panama’s International Banking Center has grown, thanks to a burgeoning local economy and incentives. But some banks complain the market is too crowded.
Posted inMagazine
Good Housekeeping
Controversial reform legislation is helping shore up Panama’s finances. The fiscal deficit, however, remains as serious a problem as ever.
Posted inDaily Brief
Panama To Issue $1.4 Billion Of New Global Bond
Following its recent swap offer, which saw the sovereign accept $1.062 billion of shorter-dated paper, Panama will issue $1.363 billion 30-year bonds. The bonds, which mature in 2036, will be issued with a coupon of 6.7%. The government had been hoping to swap up to $2.8 billion of its shorter-dated bonds and published the initial swap terms earlier this week. The bonds being exchanged were the 2020, 2023, 2027, 2029 and 2034. The deal was jointly managed by HSBC and JP Morgan.
Posted inDaily Brief
Panama Publishes Initial Swap Terms
Panama has published initial terms for its bond swap which plans to exchange up to $2.8 billion of its shorter-dated global debt for a new 30-year global bond. The sovereign is offering 230 basis points above comparable US treasuries on its new global bond which matures in 2036. The maximum clearing spreads offered on the bonds to be swapped are: 1.73% on the 2020 bond; 2.02% on the 2023 bond; 2.15% on the 2027 bond; 2.28% on 2029 and 2.30% on 2034. The deal is being jointly managed by HSBC and JP Morgan.
Posted inDaily Brief
More Resignations In Panama
Trade talks between the US and Panama have claimed another casualty with the resignation Wednesday of the director of agricultural quarantine, Concepción Santos Sanjur. This follows the departure on Tuesday of Panama’s agriculture minister, Laurentino Cortizo, protesting the loss of agricultural sovereignty to the US and claiming that Panama would face an increase in animal diseases that would threaten the health of its citizens.
Posted inDaily Brief
Panama Offers Bond Swap
Panama has offered to swap five of its shorter-dated global bonds for a 30-year dollar-denominated bond as part of its strategy to extend its debt maturity profile and reduce its short-term debt burden. In November, the sovereign offered to swap four of its global bonds, due in 2008, 2011, 2012 and 2020 for up to $980 million new 20-year paper, yielding 7.295%.