Arias, Fábrega & Fábrega acted as counsel to Global Bank Corporation, the second largest Panamanian-based bank, in connection with seven sequential public offers to exchange the totality of its preferred shares to subordinated bonds.
 
This is the first time a public exchange offer has been carried out in Panama.

In preparation for the exchange offers, ARIFA first completed a US$150 million registration of subordinated bonds with with National Securities Commission (Comisión Nacional de Valores) and listing in the Panama Stock Exchange (Bolsa de Valores de Panamá).

Following registration and listing of the subordinated bonds, an offer was launched to exchange each of Global Bank’s 7 issuances of preferred shares for subordinated bonds. 

Although the figure of an "exchange offer" was mentioned in the Panama Stock Exchange Regulations, ARIFA also had to work with the National Securities Commission and the Panama Stock Exchange to design and implement the exchange offer processes within both institutions, in addition to documenting and executing the exchange offer transaction for Global Bank.

It is also the first issuance of long-term debt (60-year maturity) for Global Bank. The bonds will be issued in series, and the issuer expects to place them both in Panama and in the Central America region.