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LatinNews Daily - 24 September 2020

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In brief: Panama issues more bonds

* The Panamanian government led by President Laurentino Cortizo has announced that it has issued US$2.57bn worth of sovereign bonds to combat the decrease in fiscal income due to the coronavirus (Covid-19) pandemic. The government projects a drop of US$3bn in public revenue more than what was originally expected. One of the bonds totals U$1.25bn, maturing in 2032 with a 2.252% yield — the lowest in Panamanian history. The others are for US$1bn and US$325m respectively, maturing in 2060 and 2026, with yields of 3.28% and 2.77%. According to the government, part of the funds raised will be used to repurchase local bonds which expire in 2021 and 2022 in order to obtain more favourable rates. The government described the response to the issue as “extremely positive”, receiving offers of around US$10bn.