ENA Hits the Road

Empresa Nacional de Autopista (ENA) is meeting US institutional accounts next week to market a 144A/RegS dollar bond. The borrower, which is wholly owned by the Republic of Panama, is scheduled to be in New York on Tuesday and Wednesday next week. Proceeds are partially slated to refinance a $150m of 6.95% amortizing 2025s that helped finance the Corredor Sur tollroad covering 19.5km of Panamanian highway. ICA Panama is selling its Corredor Sur highway concession to the government of Panama for $420m, but the deal is subject to the pre-payment of the Corredor Sur bonds. ENA is expected to come at a pickup to the sovereign’s 5.25% 2020s, which have been trading at 3.44%-3.42%.. With market volatility rising, however, one senior portfolio manager with exposure to Panamanian debt said he is watching the transaction closely but may opt to sit on his current positions. “Right now macro issues are more important than the credit,” he says adding that market conditions may influence ENA’s decision to proceed. HSBC and Global Bank are the leads.