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Bond Market News
Panama’s Dollar Bonds Drop 2-3 Points
October 23, 2024
Panama’s dollar bonds dropped by nearly 2-3 points across the curve. While there was no specific reason available regarding the drop of its bonds, the nation issued an executive decree to strip maritime vessels of their domestic licenses and registrations if they face global sanctions. Panama is known as one of the busiest maritime shipping routes in the world. On a separate note, JPMorgan Chase is lending Panama $1bn to help it with liquidity needs for its 2024 budget, according to a resolution published in the official gazette. The 3Y loan will carry an interest rate of SOFR+150bp. This facility is among measures to reassure investors that Panama is committed to fiscal and economic growth targets. Analysts note that the $1bn loan would also help Panama meet its $1.25bn external debt amortizations due in 2025. This especially comes on the back of concerns over losing its investment-grade rating. Fitch cut the country to BB+ from its earlier IG-rating of BBB-, Moody’s and S&P have it at IG-status of Baa3 and BBB respectively.
Its 6.4% 2035s fell 1.9 points to 97.49, yielding 6.74%.
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