Panama is gearing up to sell $3 billion worth of bonds in the international market this week, a source involved in the deal told LatinFinance.
“Today we begin a deal roadshow that, depending on market conditions, will price tomorrow or Thursday,” the source said on Tuesday.
Panama has hired Citi and Goldman Sachs as joint bookrunners on the bond sale and is looking to price a three-part deal with seven, 14- and 34-year notes, the sovereign issuer said in a prospectus filed with the US Securities and Exchange Commission (SEC) earlier in the day.
The country added that it plans to use the proceeds from the proposed sale to fund the budget. Panama raised $1.8 billion in a two-part bond sale in March last year and $1.4 billion in another two-part deal in September.
Moody’s downgraded Panama to Baa3 from Baa2 in October last year, citing an insufficient government response to rising fiscal challenges.