Using debt bonds, with one series placed on the international market and another in the local market, the ENA was able to raise $225 million in the local market at a rate of 5.25% and $170 million in the international market at 5.75%.
The huge interest shown by the market allowed this share release by the Panamanian government to be set at rates lower than those provided for in the financial program.
Among the major buyers of the bonds were individual investors, and local and foreign banks.
According to an article in Prensa.com; "the economist Carlos Arauz said that ENA is a successful operation, as it sets its financial costs at acceptable levels taking the market situation into account. The investor, meanwhile, is getting a return above inflation and there are dividents that guarantee the debt.
Arauz also predicted that if there is a rate hike in the markets it will not be very easy for investors to sell these bonds. "
Source: Prensa.com
More on this topic
July 2010
The Panamanian government has authorized the National Highways Company (ENA) to issue $970 million worth of debt.
The government's aim is to minimize its contribution to the capital required to acquire 100% of the shares in PYCSA and ICA, the companies holding the highway concessionss known as the north and south corridors ("Corredor Norte" and "Corredor Sur" in Spanish).
August 2011
The government has signed a contract for the acquisition of 100% of the shares of the road called ‘Corredor Sur’ from the company ICA.
The transaction was made between the State National Highway Company (ENA) and Ingenieros Civiles y Asociados (ICA), and consists of $25 million in equity and issuing $395 million in bond debt.
September 2011
Government and private sector bonds are preferred by Panamanian investors.
An interest in new tools and an attempt to steer clear of the international markets most affected by the financial crisis, have led investors in Panama to turn their eyes towards the local market, where they placed more than $14 billion by the end of July .
June 2010
The operation, conducted in the local market, will help finance the country’s “Program for Supporting Social Policies”.
The 15-year securities will pay an interest rate of 6.7%, informed the treasury ministry.
“According to the institution, the issue was mostly bought by ‘small, individual investors’, who acquired the bonds through stock brokers; other purchasers were Retirement Funds”, reported Elsalvador.com.
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