Panama Emerges with LM

The Republic of Panama has launched a three-day cash tender offer targeting holders of its $962m outstanding in 7.25% 2015 bonds, it says. The sovereign is offering $1,091 per $1,000 principal through Tuesday. Liability management has been a strong theme for sovereigns in LatAm this year, and Panamanian officials have previously indicated they would be interested in joining in. Last year, Mahesh Khemlani, then Panama’s vice minister of finance, told LatinFinance the sovereign had looked at its 2015 dollar bonds as a starting point. Panama is not specific about what it could sell to raise funds for the cash tender, noting only that Friday’s tender is “conditioned upon settlement of an issue of local Panamanian bonds or other financing, or a combination.” Citi and JPMorgan are dealer managers. Panama, rated Baa2/BBB/BBB was last in the dollar bond market in April when it priced a $750m 40-year bond.