S&C Represents Underwriters of Panama’s Historic Financing

October 14, 2020

The Republic of Panama completed the largest capital markets financing in its history, totaling $2.575 billion of bonds and notes on September 29. The three-tranche offering consisted of $1.25 billion of newly issued 2.252% Global Bonds due 2032, $1 billion of reopened 3.87% Global Bonds due 2060, and $325 million of reopened 3.75% Treasury Notes due 2026.
 
This marks the second time that Panama has issued Panama law-governed Treasury Notes marketed to local and international investors in reliance on Rule 144A and Regulation S and the first time it has done so simultaneously with a registered Global Bond offering. S&C also represented the underwriters in the first of the Treasury Notes offerings in 2019.
 
The largest tranche, $1.25 billion of 2.252% Global Bonds, carries the lowest interest rate for a Panama bond offering of its kind. The transaction was oversubscribed, receiving in excess of $10 billion in orders. Simultaneously with this offering, Panama launched a liability management transaction targeted to holders of other outstanding Treasury Notes. 

S&C regularly acts as underwriters' counsel for registered public offerings by Panama and represented Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC on the Global Bond offering, with the addition of Valores Banistmo S.A. on the Treasury Notes offering.
 
The S&C team was led by Christopher Mann and Werner Ahlers and included special counsel Paul McElroy and associate Joaquin Perez Alati. Jeff Hochberg advised on tax matters and Bob Risoleo advised on capital markets matters.