Arias, Fábrega & Fábrega acted as counsel to Citigroup Global Markets Inc. and Deutsche Bank Securities Inc in connection with an invitation made by the Republic of Panama to the holders of its 9.625% global bonds due 2011 and its 9.375% global bonds due 2012 to submit offers to exchange such bonds for 9.375% U.S. Dollar-denominated global bonds due 2029 and in connection with the placement of US$235,000,000 new 7.250% global bonds due 2015.

This was a landmark transaction for the Republic of Panama. The offer of the 7.250% global bonds was characterized by the Ministry of Economy and Finance as the lowest cost financing ever achieved by the Republic of Panama since its incursion in the international capital markets. Demand for these global bonds totaled US$1.5 billion, exceeding 6.7 times the offer.