Arias, Fábrega & Fábrega advised Morgan Stanley & Co LLC, Goldman Sachs & Co. and Banistmo, S.A., as Initial Purchasers, in connection with the offering by the Republic of Panama of US$1 billion aggregate principal amount of Rule 144A/Reg. S Euroclearable 3.75% Treasury Notes (Notas del Tesoro) due 2026 and governed by Panama law.  This transaction marks the first time that Panama actively offered and sold local-law governed Notes listed on the Panama Stock Exchange to both international and local investors.

The Notes were primarily structured for and aimed at foreign investors as part of the Panamanian Government’s strategy to facilitate access by foreign investors to Panama’s local government debt market, expanding the possible sources of funding for Panama and strengthening the local securities market. The innovative transaction structure required a great deal of coordination between all parties involved, including changes to the Panama Stock Exchange’s Settlement Rules.

The firm expects Panama and other local issuers to complete additional offerings of this kind in the future.