Arias, Fábrega & Fábrega acted as Panamanian counsel to Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc., as underwriters, in connection with the successful offering by Panama of up to US$1,000,000,000 of 5.20% U.S. Global Bonds due 2020.

According to the Ministry of Economy and Finance of Panama, the 5.20% interest rate on the Global Bonds represents the lowest financing cost ever achieved by Panama in the capital markets. The total amount of the offering is also the largest in Panama's history.

The transaction has been praised by financial analysts because the proceeds of the Global Bonds will be used to pay off existing and more expensive internal indebtedness with the government-owned National Bank of Panama (Banco Nacional de Panamá), the Social Security Administration (Caja de Seguro Social) and the government employee fund, SIACAP, in an approximate aggregate amount of US$1 billion.

Sullivan & Cromwell LLP acted as U.S. counsel to the underwriters in New York and Arnold & Porter LLP acted as U.S. counsel to Panama.