Panama to Exchange $478m in Bonds

Panama plans to issue $477.7m in 2029 bonds to holders of its 2011 and 2012 notes, following an exchange that expired Wednesday. It accepted $262.3m worth of the 9.625% 2011s at a repurchase price of 115.432 (T+170bp). The sovereign also agreed to repurchase $286.9m of the 9.375% 2012 notes at 119.624 (T+94bp). The 2029 bonds were reopened at 135.205, to give a yield of 168bp over the UST reference yield of 4.631%. The transaction serves to get investors into more liquid points on the curve, and follows Monday’s $235m reopening of the 7.25% of 2015. Citi and Deutsche Bank managed both transactions.