The Ministry of Economy and Finance of Panama announced the start of the Fifth Tranche of Treasury Notes for a maximum of USD 6 billion in 2024. This program will continue to be a key tool for the development of the local market in 2025 and beyond, as part of the MEF's strategy to diversify the State's financing sources and strengthen the local market.
On February 25, 2025, the government of Panama, through the MEF, conducted the first Auction of Notes for the year 2025, corresponding to the Fifth Tranche of the new Treasury Note with a coupon of 6.625% and maturing in August 2029. In this auction, the MEF achieved a Weighted Average Price of 98.82% and a Weighted Average Yield of 6.935%.
The strategy for strengthening the internal capital market and controlling Panama's annual interest expenditure are key objectives of the MEF. The auction was conducted through the Market Makers program and took place at the Latin American Stock Exchange (LATINEX), with an indicative amount of USD 100 million.
A total of 47 bids were received for an amount of USD 87.14 million, of which competitive bids of USD 64.85 million and non-competitive bids of USD 12.09 million were awarded, totaling an awarded amount of USD 76.94 million, close to 88% of the total bids received. The spread between the 2029 global bonds and the PANOTA 2029 was 69.5 basis points.
This issuance program of Notes authorized by Cabinet Decree No. 34 of 2024 continues to be a fundamental tool for the growth of the local market and the diversification of financing sources in Panama towards the year 2025 and beyond.
