Arnold & Porter Advises Panama on Two Financings Totaling €2.9 Billion

Arnold & Porter recently advised the Republic of Panama on two separate sovereign financing transactions totaling €2.9 billion, one with Banco Santander and the other with Merrill Lynch International, a Bank of America affiliate.

In the first transaction, Santander provided a €1.2 billion loan bearing interest at a fixed rate of 4.83%. The proceeds were used to refinance debt scheduled to mature in 2027. In the second transaction, Merrill Lynch provided a €1.7 billion loan bearing interest at a fixed rate of 4.67%. That financing comprised €1.2 billion used to refinance additional debt scheduled to mature in 2027 and €500 million of new financing.

Together, the two transactions allowed Panama to address €2.4 billion of its 2027 maturities in advance, extend the relevant debt maturities to 2031, and secure fixed-rate financing at rates below the Government’s estimated cost of a comparable market issuance.

The Arnold & Porter team was led by partners Whitney Debevoise and Gregory Harrington, and included counsel Arturo Caraballo and senior associate Mateo Morris. Tax advice was provided by partner David Sausen and associate Lauren Olaya.