Metro de Panama $618.7 million securitization

Overview:

• SPARC EM issued $618.71 million series 2017-1 notes to finance the construction of Line 2 of the Panama City Metro.
• The notes are due 2022. 
• SPARC EM agreed to purchase no-objection certificates ("CDNOs") which the Metro de Panamá delivered as payment. 
• This was the first time in Panama that bonds were backed by CDNOs.
• This is also the first time a transaction of this nature was listed on the Singapore Stock Exchange. 
• The transaction is also notable because it represents an issue of government certificates to finance a Panama infrastructure project.
• Panama's Ministry of Economy and Finance provided an ROP Guarantee for the notes.
• UBS acted as bookrunner. 

Rani Mehta - Journalist