Panama to raise $500 million from samurai bond sale

Panama plans its first yen-denominated bond sale with an offer to raise at least $500 million on Japanese markets early next year, Finance Minister Alberto Vallarino said.

“Our government wants to diversify its funding options and raise the profile of Panama amongst Japanese and Asian investors,” he said.

The country will be able to lower its borrowing costs by selling debt in Japan rather than in the United States, he said.

The yield on Panama’s 5.2 percent dollar bonds due in 2020 tumbled 112 basis points, or 1.12 percentage point, this year to 3.97 percent.

Original source: Bloomberg