Loan Margins Widen for Panama’s Banco General

Panama’s Banco General is expected to agree to a new $100m two tranche facility as early as today, according to bankers close to the borrower. The financial institution, which acquired Banco Continental last year, is seeking to refinance a loan of equal amount with a 2-year piece at 37.5bp over Libor and a 3-year portion at 45bp over Libor that comes due this year. Bankers expect pricing on a new facility to come in at twice those levels, thanks to rising margins across the board. LatAm pricing has moved up significantly in the past 8 months, catching borrowers off guard as they come to market to refinance or take out new facilities for trade purposes, working capital and acquisitions. The BBB rated bank took out the first $100m facility in 2006 for working capital.