The Panamanian electric power generation company Electron Investment (EISA) placed corporate bonds for 205 million dollars. The securities accrue three-month Libor interest rate plus an applicable margin of 3.75% per annum and have a maturity date of July 17, 2030.
Morgan & Morgan advised the issuer in this transaction, which was carried out on the Panama Stock Exchange on July 15. The issue was approved by the company’s general shareholders’ meeting on March 18 of this year.
Aleman, Cordero, Galindo & Lee represented Banco General, as arranger, underwriter and payment, registration and transfer agent.
According to the final issuance prospectus, a large part of the resources raised in the placement -187 million dollars- will be used to cancel all the bonds maturing on July 14, 2025 and a subordinated loan for 15 million dollars with Banco General which expires on May 30, 2023. The remainder of the funds will be used for general corporate fines.
The bonds are backed by a guarantee trust that EISA established in 2015 with BG Trust for an issuance for 235 million dollars.
Morgan & Morgan explained that the trust agreement was modified on May 14 of this year and added that a pledge was established on the shares issued by the issuer and mortgages on both movable and immovable property owned by it, related to the hydroelectric power plants.
On July 9, Fitch Costa Rica assigned the “BBB+(pan)” rating, with perspective, to the company and its stable issuance of corporate bonds.
Founded in 1984 by InverAvante and Grupo Eleta, Electron Investment owns and operates the Pando hydroelectric plants, with an installed capacity of 33.3 megawatts (MW), and Monte Lirio, with a capacity of 51.6 MW. The plants are located in the middle upper basin of the Chiriquí Viejo river, between the districts of Bugaba and Renacimiento, in the province of Chiriquí.