Panama Upsizes 2020 Retap

Panama priced $500m in reopened 2020 bonds Thursday to fund a cash tender for its 2015 bonds, almost doubling the $260m size indicated earlier in the day. The 5.200% coupon bond reopened at 107.924 to yield 3.750%, at the tight end of 3.850%-area guidance, according to people following the sale. The sovereign received orders for $689m in the tender open Friday through Tuesday, and said early Thursday it planned to accept $345m. There was no indication following the pricing if Panama would increase the buyback due to the upsizing of the retap. The local market was also an option for Baa2/BBB/BBB Panama to raise funds for the tender. Panama offered $1,091 cash per $1,000 principal to holders of the 7.25% 2015. Citi and JPMorgan managed the new issue and the tender. Panama was previously in the dollar bond market in April when it priced a $750m 40-year bond. The 2020 bond was originally sold in 2009, raising $1bn.