Welcome to the Panama Weekly News Roundup! Here’s the latest.
The Panama Canal Expansion Project reaches 85% completion.
The Panama Canal Expansion has been massive, and has had both major milestones and delays. After nearly 2-year delay officials are now claiming they are 15% away from completion. This puts it on pace to be completed by December 2015, according to the Canal’s administrator Jorge Quijano.
According to information published by the information portal Panama Advisory International Group, transshipment activity in the region of Central America in general and in the Caribbean, also grow as a result of the expansion. Currently almost all charge moved through the transfer channel is handled exclusively by Balboa Hutchison terminal, with a small number that passes through the PSA terminal Rodman.
Source: GoGetIt Panama
Panama files with SEC for $3 billion debt sale.
This past week, Panama filed with the SEC to sell up to $3.04 billion in debt. This was big news for the national debt holdings, referred to as “sovereign”, and big for the Panamanian government.
Bankers have been awaiting a mandate decision from the sovereign, which sent out request for proposals earlier this month. It is the second Central American country to take aim at foreign investors this week, after Ba1/BB/BB+ rated Costa Rica mandated Deutsche and HSBC for an up to US$1bn offering.
Both sovereigns are expected to consider raising 30-year money in a market that still enjoys a decent bid for duration, with investors seeking yield pick-up further up the curve – especially among sovereigns.
Source: Reuters
Panama’s 32-MW Bonyic hydropower plant begins commercial operations
One of Panama’s most significant sources of hydroelectric power will now begin commercial operations, according to Colombian utility company EPM. EPM has spearheaded the project and hopes to sell clean energy under commercial operations as early as the Spring. This could mean big business for the company, and a great way to help curb a regional power demand surge.
The US$314 million project is located on the Teribe River in Bocas del Toro province and will eventually house three Francis turbines — the remaining two of which are expected to come on line by the end of March. Bonyic is being developed by EPM subsidiary Hidroecologica del Teribe S.A., which will sell electricity generated by the plant to unnamed Panamanian distributors under a 15-year power purchase agreements. EPM — based in Colombia — said it will use the international experience gained by working in Panama to “capitalize to apply in other countries”.
Source: Hydro World
Panama’s Hotel Investment is Surging: Looks to grow even bigger in 2015
Carnaval is over, and as Panama begins to clean up from a week of partying, they are also tallying up the economic toll, and the numbers are huge. One of the biggest economic booms happening in Panama, Carnaval or not, is the growing hotel sector. This year alone, there are new hotel plans from some of the world’s biggest developers, riding a 5-year wave of a surge. Here’s a bit more from one of our latest blog posts:
The biggest factor behind the pending success of new hotel investment is whether or not the demand to fill the rooms is there. Being a business hub is great. Being a tourism hub is also great. Being both at the same time almost guarantees year-round business. It also means a diverse group of clientele, which makes the market very wide, and very apt for all types of hotel development.
Panama is known as an international business center, and with easily accessible flights, makes a perfect location for conventions and on-site visits. It’s also a fast growing tourist market. This means diverse investments are becoming more popular, with small boutique hotels as well as big hotels/resorts all vying for a piece of the pie.
Read more about Panama hotel investment
