The Panamanian government conducted an operation in international markets, the first since 2024, which combined the issuance of new bonds with the repurchase of outstanding debt. This is part of its strategy for liability management and the reorganization of its financial obligations, according to authorities.
In total, they issued $2.98 billion in bonds to repurchase debt and reduce the balance by approximately $200 million. The transaction included the placement of two bond issues, each for $1.49 billion. These funds allowed for the repurchase of approximately $2.97 billion in existing debt, removing some of the securities from the market.
As a result, the total public debt was reduced by $204 million, and a structural annual decrease in interest expenses of nearly $30 million was achieved. This was possible due to the replacement of older bonds with new financial terms and a better ordering of maturities, the Ministry of Economy and Finance explained.
In a press release, the MEF also stated that the new bonds have maturities in 2034 and 2038, with coupon rates of 5.2% and 5.6%, respectively, and incorporate amortization schemes that contribute to «a more orderly and sustainable management of the State's financial obligations».
The new issue registered a demand of over $13 billion, while the public repurchase offer received proposals of around $8.9 billion, reflecting the interest of international investors in the transaction.
In the document, the Minister of Economy and Finance, Felipe Chapman, highlighted the importance of this operation: “This transaction represents a concrete step in our strategy to strengthen public finances by reducing the debt balance, lowering the cost of financing, and generating permanent savings for the State.”
