SOURCE: Republic of Panama

January 30, 2012 15:04 ET

Panama Announces Satisfaction of Financing Condition and Results of Its Cash Invitation

PANAMA CITY--(Marketwire - Jan 30, 2012) - The Republic of Panama ("Panama") announced today that the Financing Condition has been satisfied for its previously announced cash invitation (the "Cash Invitation") to eligible holders of its 7.250% Global Bonds due 2015 (ISIN: US698299AU88; CUSIP: 698299AU8; Common Code: 020635525) (the "2015 Bonds") to submit offers to sell 2015 Bonds for cash.

Accordingly, Panama has accepted for purchase U.S.$250,127,000 aggregate principal amount of 2015 Bonds pursuant to the Cash Invitation. U.S.$500,302,000 aggregate principal amount of 2015 Bonds had been submitted in noncompetitive offers and have been accepted pro rata at a proration factor of 50.0%. No competitive offers have been accepted for purchase.

For each U.S.$1,000 principal amount of 2015 Bonds accepted for purchase, Panama will pay U.S.$1,166.98 as the Clearing Price. In addition to the Clearing Price, holders of the 2015 Bonds accepted for purchase will receive accrued and unpaid interest during the period from the most recent interest payment date to but excluding the actual Settlement Date. The Clearing Cash Premium was set at zero.

The settlement date for the 2015 Bonds to be purchased pursuant to the Cash Invitation is expected to be February 1, 2012 (the "Settlement Date").

The terms and conditions of the Cash Invitation are set forth in the cash invitation document dated January 17, 2012 (the "Invitation Document"). Capitalized terms used but not defined in this notice are defined in the Invitation Document.

Information and Tender Agent

The information and tender agent for the Cash Invitation is Bondholder Communications Group, LLC.

Bondholder Communications Group, LLC is located at 30 Broad St., 46th Floor, New York, NY 10004 (Attention: Ramona Peters). Bondholder Communications Group, LLC can be reached at the following numbers:1-888-385-2663 (toll free); +1-212-809-2663 (call collect).

Joint Dealer Managers

Goldman, Sachs & Co. and Citigroup Global Markets Inc. are acting as Joint Dealer Managers for the Cash Invitation.

Goldman, Sachs & Co. can be reached by telephone at the following numbers: +1-800-828-3182 (toll free); +1-212-902-5183 (call collect).

Citigroup Global Markets Inc. can be reached by telephone at the following numbers: +1-800-558-3745 (toll free); +1-212-723-6108 (call collect).