First Treasury Note 2026 under Panamenian Law and 144-A REG S - - PowerPoint PPT Presentation

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First Treasury Note 2026 under Panamenian Law and 144-A REG S

1.

The New 7-Year Euroclearable Local Treasury Note “Panota 2026”…

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On April 10, 2019, the Republic of Panama, successfully priced a US$1.0 bn offering of new 7-year Euroclearable Local Treasury Note…

Final Terms and Conditions Baa1/BBB+/BBB Issuer Rating Senior Unsecured Rank 144A/Reg S Format US$1.0 bn Principal Amount April 17th, 2026 Maturity 3.750% Coupon 99.847% Issue Price 3.775% Yield to Maturity LatinClear and Euroclear Listing Law of the Rep. of Panama Governing Law Transaction Highlights

• Panama’s first internationally placed under 144-A Reg S and local

Law Instrument

• The Notes are listed on LatinClear, the local clearing house, and

trades in Euroclear.

• Strong investor participation from local and international accounts

allowed Panama to tighten from initial price of T+150bps to a final spread of T+140bps.

• With

this transaction Panama joined

• ther

Latin American sovereigns such as Mexico, Peru, Chile, and Uruguay in an effort to develop its local market.

Joint Bookrunners Local Broker Dealer

2.

Demand and Allocation of Treasury Note “Panota 2026”

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67% 16% 14% 2% 1% A.M. P.F.I Banks Hedge Funds Others 25% 27% 48% U.S.

Allocation By Investor Type Allocation By Region

LatAm EMEA

The Republic of Panama, on their first offering, managed to generate significant demand from top U.S., European and Latin American investors to build a strong order book, which reached 2x oversubscription.

Source: Directorate of Public Financing Source: Directorate of Public Financing

The notes were allocated to asset managers (67%), pension funds & insurance companies (16%), banks (14%), and hedge funds (2%). From a geographical perspective, 48% was allocated to U.S. investors, while 27% went to Europe and 25% to Latin American investors.

3.

Panota 2026 – Secondary Market Performance

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G-Spread differential Panota 2026 vs Panama Global Bond 2026

Source: Directorate of Public Financing

From April to November, the Panota 2026 records an average differential of 19 basis points (bps) compared to our Global Bond of same maturity. It is important to point out that this differential has been tightening from 39bps, hitting a record differential of 1bp in September 16, 2019.

101 100

• 5

10 15 20 25 30 35 40

• 20

40 60 80 100 120 140 160 180 200 11-04-19 11-05-19 11-06-19 11-07-19 11-08-19 11-09-19 11-10-19 11-11-19

Spread Differential G-Spread

Differential Panota 3.75% 2026 Panama Intl Bond 2026

Lowest Spread achieved

112 92

3.

Panota 2026 – Secondary Market Performance

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Panota 2026 as percentage of total Custody in Euroclear November 2019

Source: Directorate of Public Financing

From April to November, Panota 2026, has been the instrument with the highest amount in custody of Euroclear compared to the other local instruments.

81% 81% 77% 76% 76% 77% 77%

April.19 May.19 June.19 July.19 August.19 Sept.19 Nov.19 Panota 2021 Pabono 2022 Panota 2023 Pabono 2024 Panota 2026

4. Requirements of local regulation

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“Macrotítulo” of Treasury Note 2026 As one of the requirements of our local regulation, a “Macrotítulo has to be signed by the General Comptroller of the Republic.

5. Pros and Cons – Panama experience

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Pros

Pricing mechanism allowed spread reduction during auction process Increasing liquidity and depth of the local market Participation of International investors in local-law issuances Investor base diversification

Source: Directorate of Public Financing

Cons

Greater financial cost (the goal is to reduce the spread over the international curve) Higher legal and

• perational costs

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