ETESA tracks Panama's 2050s for new notes

ETESA tracks Panama's 2050s for new notes

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Funds Asset Management Project & Infrastructure Finance Energy Electricity Panama Central America

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.

Panama issued $1.2bn in 4.5% 2050 notes in April 2018 and added $550m in October last year.

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.

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