This is the first public bond sale by Indesa Finance, Panamanian subsidiary of Indesa Holding.
“These bonds mature in three years, and pay 6.5% annual interest. The sale was approved by the National Securities Commission”, reported Laestrella.com.pa.
More on this topic
With the industrial sector leading the way, Panamanian companies are increasingly going to the local stock market for their financing.
"According to the registry of the Superintendency of Securities Market (SMV), up to early May there were $440 million in securities belonging to different companies, and another $1.033 billion were in the process of being registered," noted an article in Laestrella.com.pa.
Grupo Toledano is to issue $45 million in corporate bonds to be used to settle debts with creditors and banks, and as working capital.
Capital.com.pa reports that "According to the prospectus published on the Panama Stock Exchange (BVP), the corporate bonds are divided into seven series that meet the following amounts: Class A-1, up to $5 million, Series A-2, up to $5 million, Series B, up to $15 million and the Series C, D, E and F together totaling $20 million. "
The Nicaraguan financial company Finnancia Credit is to issue commercial securities in the amount of $5 million on the Panamanian market.
The Negotiable Commercial Securities (VCN by their initials in Spanish) will be issued in three series with terms of one year and will have an interest rate of 7% per annum for the first series, which was released on April 30 in the amount of $2 million.
The increased demand for bank credit from consumers and businesses plus the financing needs of the government, is putting pressure on the capital market and interest rates.
The competition for liquidity can be seen in the activity of the National Stock Exchange, where the amounts being released on the exchange are increasing because of the concurrence of the state banks - Banco de Costa Rica, Nacional and Popular, and of private banks like Scotiabank, and by other entities such as Grupo Mutual y la Compañía de Fuerza y Luz.