April 18, 2019 |
State-owned transmission company uses the sovereign's long-term notes as a reference point for its own 30-year, $750m bond sale next week, source says
Panama's state-owned transmission company ETESA will use the government's 2050 sovereign bonds as a touchstone when it prices $750m in 30-year notes on April 25, LatinFinance has heard.
"Panama's 30-year is the benchmark," said a debt capital markets banker in New York. "It trades with a 150bp spread over US Treasury notes and pays a 4.3% coupon," he added.
After meeting investors in Boston on Wednesday, ETESA goes to Santiago, New York and Los Angeles early next week, before pricing the notes next Thursday, the banker said.
Several investors, including the "BlackRocks of the world," have shown interest in ETESA's bond market debut, he said.
Scotiabank and Bank of America are leading the bond sale.