News

A bond to support the construction of the second line of Panama City’s metro was enthusiastically supported by investors, attracting more than $1.8 billion of orders, according to press reports.

Support for the bond was a broad display of confidence in Panama and the stability of the project and the government, which is backing the bond. The bond is backed by construction payment obligations guaranteed by the government, IFR reports.

The investment community “piled” into the financing deal, drawing more interest than initially expected, IFR says. “People really seemed to like the structure,” one analyst told the news agency.

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As we reported earlier this month, construction on Line 2 of the metro is moving forward at a rapid pace and is almost 50 percent completed.

Securing the financing through the bond was the latest step in the process, illustrating the government’s commitment to making the full metro system a reality. Work is also moving forward on the next segments of the metro, including a line that will cross the Panama Canal and connect western communities to downtown.

The western link of the metro will use a new bridge that will be built over the Canal, which should dramatically improve traffic and links to the west of the city.