Banks Close Panamanian Power Plant Bond financing

WestLB and Banco General have closed on a $175m local public bond issue supporting the conversion of the Bahia Las Minas plant owned by Suez Tractebel and the Panamanian government. The transaction, consisting of a $100m 2020 tranche and a $75m 2022 tranche, is thought to be the first of its kind in the Panamanian bond market and the first of its type under New York law. It was done this way to access the liquidity of the local market while still allowing the participation of foreign lenders, according to bankers on the deal. The 245 megawatt fuel oil-fired plant in Colon will be converted to run on coal.