Category: Panama

Panama’s economy grew by 5.9% in the third quarter of the year, and grew by 6.1% in the first 9 months of year to September, compared with the same period in 2004. The growth was driven by the country’s booming re-export business, and the soaring export business through the Panama Canal.

Panama’s newly issued benchmark sovereign paper has been rated BB+ by Fitch Ratings. Panama issued $980 million of the 20-year global bonds which mature on 29 January 2026.

Panama has offered $980 million of new 20-year debt in exchange for four of its global bonds, maturing in 2008, 2011, 2012 and 2020. The new paper matures in 2026 and yields 7.295%. Panama said it wanted to extend its debt maturity profile and reduce its short-term debt burden. The swap is being managed by Citigroup.

Panamanian investment bank, Grupo Banistmo, says that it plans to invest $145 million in buying 60% of Banco Salvadoreño of El Salvador. It says it is also looking to invest in Guatemala.

Panama has filed with the U.S. Securities and Exchange Commission (SEC) to issue up to $2 billion worth of debt. Panama said it planned to issue the securities to raise money for general refinancing and other spending needs. The ‘shelf registration’ allows Panama to sell securities in one or more offerings, determining details such as size and price at the time of sale.

The Panamanian economy expanded by 6.2% in the first six months of this year, as measured by the monthly index of economic activity (IMAE). The most dynamic sectors included fish and seafood exports, agriculture products and tourism. The government has forecast economic growth this year of between 4.5% and 5%, below the 6.1% growth witnessed in 2004.