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PANAMA INVESTMENTS
Investment
opportunities
Panama Stock Exchange
INVESTMENT
OPPORTUNITIES
The following areas offer excellent investment opportunities for U.S.
companies.
Electric Power
Health Care
Mining
Port Construction/Operation/Privatization
Reverted Areas
Road Construction and Rehabilitation
Telecommunications
Electric Power Generation
In February, 1995, the GOP passed legislation that allows IRHE, the
government electric utility to purchase energy from private suppliers.
IRHE recently announced plans to purchase electric energy from a 100
M.W. plant to be constructed and operated by a private company. Companies
investing in a power plant can also sell energy to other Panamanian
companies.
The Inter-American Development Bank (IDB), is studying the possibility
of financing a 120 M.W. hydroelectric plant to be constructed and operated
by IRHE in the province of Chiriqui, although some observers believe
the project will not be cost effective.
Panama's demand for electricity grows by 40 Megawatts per year. Since
IRHE does not have the investment capability to meet it, a growing participation
of the private sector, particularly foreign investors, is necessary.
Health
Care Services
The Inter-American Development Bank (IDB) is co-financing a US $52.8
million program aimed at: improving the operating efficiency of health
care institutions; improving the health of the general population; and,
advancing the reform of the service sector.
The program includes the construction of 16 health care centers. A number
of studies will also be conducted, and substantial amounts of medical
equipment will be acquired.
Mining
Exploration and Operation
Panama has vast amounts of minerals resources, located in the central
provinces of the country. There is significant potential for gold, silver,
copper, zinc, lead and, molybdenum exploitation. No government restrictions
exist for foreign companies to participate in mining explorations and
operations, except for the requirement that 90% of all employees be
Panamanians.
A few mining companies from Canada have made sizable investments in
the mining sector. The two largest are Adrian Resources Corp., and Greenstone
Resources, Inc. These two companies have invested over US$ 100 million
in mining explorations during the last three years.
Several mining sites have easy access by road. For information on mining
investment opportunities, contact the Ministerio de Comercio e Industrias,
Direccion de Recursos Minerales.
Port
Construction/Operation/Privatization
The GOP is interested in increasing the efficiency of its port system.
In achieving this purpose, the National Port Authority (APN), is promoting
the construction of new ports and privatizing some operations of the
country's major ports.
A new container port, the Manzanillo International Terminal, began operations
last year, on the Atlantic side, under a joint venture arrangement between
Stevedoring Services of America of Seattle, WA, and Motores Internacionales,
a Panamanian distributor of Russian-made cars and trucks. Half of this
project financing comes form the World Bank's International Finance
Corporation.
The Taiwanese company, Evergreen, is negotiating with the GOP the construction
of a second container port on the Atlantic side.
Petroterminal de Panama, a joint venture between the GOP and Northville
Industries of New York, NY., is planning to construct a new port facility
in Chiriqui Grande on the Atlantic side.
APN announced recently that many port operations will be privatized
in the Atlantic Port of Cristobal, Panama's most important port, and
in the Pacific port of Balboa. (
Reverted
Areas
As a result of the Panama Canal Treaties of 1977, the United States
has transferred to Panama 70,000 acres of lands, more than 4,000 buildings,
numerous bridges, and other infrastructures located in the former Canal
Zone and the U.S. military bases.
The reversion process concluded in the year 2000. Panama is committed
to incorporating these resources to enhance the country's economic and
social development. A number of projects will have to be developed in
these areas in the very near future. The Inter-American Development
Bank is co-financing a US $9.2 million study that will define the plans
for the efficient use these resources. The GOP chartered the Interoceanic
Regional Authority (ARI), to administer the reverted resources and to
create a development strategy.
Projects to be considered include manufacturing, assembly, tourism,
warehousing, education, scientific research, energy generation, etc.
Road
Construction and Rehabilitation
In 1994, the Government of Panama, in conjunction with the Inter- American
Development Bank and the World Bank, began a US $420 million, five-year,
road construction and rehabilitation program, to be completed in 1997.
The program includes road construction in rural areas, rehabilitation
of major existing roads, bridge construction and maintenance, urban
road maintenance and over pass construction.
Additionally, the GOP is seeking to expand the road network in metropolitan
Panama City via administrative concessions. Under this scheme, private
companies would make the necessary investment to construct and operate
a road. They would be permitted to recuperate the investment through
a toll system.
A US $300 million (Corredor Norte and highway Panama-Colon) road project
has been awarded to the Mexican company PYCSA. Another US $150 million
project (Corredor Sur) is in process of being awarded.
Telecommunications
Panama is restructuring its telecommunications sector in order to make
it more efficient and competitive. Significant investment opportunities
will open as the modernization process is developed. The government
telecommunications company (INTEL) has been converted into a corporation
and 49 percent of its shares have been sold to the private sector. Another
49 percent will be retained by the GOP. The remaining 2 percent will
be kept in a trust fund for INTEL employees.
Wireless communications offers many investment opportunities, as do
internet services etc.
PANAMA
STOCK EXCHANGE
For almost a century,
Panama's dollar-based monetary system has fostered a stable, open economy
based on a modern banking center, a nationwide trade zone and broad
infrastructure of corporate and financial products successfully serving
Latin America.
The Panama
Stock Exchange emerges as the natural development of this unique economy.
It stands as the only dollar-based securities market in the region.
Our mission is to increase and complement the stability that Panama
provides to Latin America. Our vision is to provide a unique regional
niche for investors, issuers and broker/dealers seeking global challenges.
Mission:
Since its creation
in 1990, the Panama Stock Exchange has been an important part of the
development of Panama's role as a regional financial center.
The exchange
is the only Dollar-based securities market in the region, and Roberto
Brenes, its Managing Director, is laying the foundation for a market
that will list shares of companies from throughout the region.
The main
targets are the many companies of Central America and the northern countries
of South America that have strong balance sheets but are too small to
issue shares in New York. In Panama, these companies could find ready
sources of capital in the foreign investors who have billions of dollars
deposited in Panamanian banks.
This regional
business is showing promise. El Salvador's Taca Airlines pioneered last
year with a $30 million-share issue on the exchange. Banco Ganadero
of Colombia issued $20 million in shares in December 1995, and Banco
de Colombia followed with a $10 million offering.
As part of
the effort to develop a regional equities market, the Panama Stock Exchange
has taken a leadership role in financially integrating Central America
through a regional exchange known as the Bolcen, which should be functioning
by the end of 1996. As a first step, clearing and settlement systems
are being harmonized to bring delivery and payment in line with world
standards.
Currently,
most transactions -- $233.4 million last year -- center on government
bonds. Banco Disa recently issued bankers' acceptances through the stock
market.
Requirements:
Companies must
obtain the authorization of Panama's National Securities Commission
to sell or underwrite an initial public offering of securities. Companies
must also apply to have securities listed on the Panama Stock Exchange.
To obtain
the Securities Commission's authorization, companies must file through
an attorney with the Commission and the Stock Exchange. The main filing
requirements are:
The articles
of incorporation and by-laws of the company, which must be registered
with the National Public Registry.
Certification
from the National Public Registry of the names of the company's directors
and legal representative, the authorized share capital and the term
of the maturity of the company.
A prospectus
or selling memorandum in compliance with the rules and regulations of
the National Securities Commission.
To list in
Panama securities initially issued by a company abroad, the main requirements
are:
An information
memorandum describing details of the issue, which must comply with the
rules and regulations of Panama's securities commission and the exchange.
Copies of
the most recent financial statement, which may be no more than 120 days
prior to the application date, and statements for the past three fiscal
years. Statements must be audited by an independent certified public
accountant and comply with generally accepted accounting principles.
The issuer
or agent who requests the listing on the Panama Stock Exchange must
appoint a legal agent with full power of attorney to permanently represent
the issuer in Panama.
All documentation
issued in a foreign country must be authenticated by the competent authorities
or diplomatic representative of Panama in the country of origin of the
document.
Registration
with the National Securities Commission in Panama is free. The Panama
Stock Exchange registration fee is $250, plus an annual maintenance
fee of $100.
Direct enquiries
or further questions for the Panama Stock Exchange can be addressed
to this e-mail: bvp@pty.com or
Mr. Roberto Brenes
P.
General Manager, Panama Stock Exchange
Calle Elvira Mendez y Calle 52, Edif. Vallarino, Planta Baja
Postal Code: 87-0878
Republic of Panama
Tel:
(507)269-1966 Fax: (507)269-2457
Panama
Stock Exchange Members:
Cambios,
S.A. Manuel D. Cabarcos G. Juan Manuel Cabarcos C. Tel: (507) 264-6655
Fax: (507) 264-5204 Apdo, 4341, Panama 5, Rep. de Panama
Negocios
En Valores Mariana de Detresno-Pedro Detresno Thomas Abrahams Tel: (507)
269-5135/264-4301 Fax: (507) 264-2878/264-7395 Apdo. 6-497 El Dorado,
Rep. de Panama
Capital
Traders of Panama Dulcidio De La Guardia Tel: (507) 264-2044 Fax: (507)
223-5147 Apdo. 7201 Panama 5, Rep. de Panama
Inversiones
Bursatiles De Panama, S.A. Ramon E. Fabrega G. - Americo Quintero M.
Julieta G. de De Diego-Samuel Espinosa Tel: (507) 263-7150 Fax: (507)
263-7995 Apdo. 6646, Panama, Rep. de Panama
Tower Securities
Inc. Ricardo Sosa Tel: (507) 269-6900 Fax: (507) 269-2964 Apdo. 6-6039
El Dorado, Rep. de Panama
Banistmo
Brokers Inc. Alvaro Tomas A. - Alberto Alvarez A. Aura Beitia Tel: (507)
269-9555 Fax: (507) 264-5881 Apdo. 6-3823 El Dorado, Rep. de Panama
Bantal
Brokers, S.A. Javier Carrizo-Paul A. Smith Monica de Chapman-Vicente
Pascual Francisco Escoffery-Carolina Guardia Tel: (507) 263-7072 Fax:
(507) 264-7106 Apdo. 135, Panama 9A, Rep. de Panama
BG Investment
Co., Inc. Juan Raþl Humbert A.-Francisco Sierra Eugenia de Jimenez-Rosa
Duboy Tel: (507) 227-3200/3169 Fax: (507) 225-2868 Apdo. 4592, Panama
5, Rep. de Panama
LAFISE
Jorge Rosania Tel: (507) 264-7100/5416 Fax: (507) 264-7528 Apdo. 55-2654
Paitilla, Rep. de Panama
Citi Valores
Eduardo Jimenez-Ema M. de Zarak Giselle de Tejeira-Omar Alvarado Tel:
(507) 263-5544 Fax: (507) 264-0659 Apdo. 555, Panama 9A, Rep. de Panama
Valcomer
Carlos R. Henriquez L. Tel: (507) 263-6800 Fax: (507) 263-8033 Apdo.
5198 Panama 5, Rep. de Panama
Sterling
Securities, Inc. Samuel Lewis N.-Rugiere Galvez Maruquel de Ramirez
Tel: (507) 264-6444 Fax: (507) 264-3972 Apdo. 8437 Panama 7, Rep. de
Panama
Franklin
Guarantee Securities Corp. Nicolas Arditto Baraletta P.-Arturo Tapia
Tel: (507) 269-5915/227-4577 Fax: (507) 264-1746/227-4100 Apdo. 87-2887
Panama 7, Rep. de Panama
Bincap
Brokers, Inc. Marielena Garcia Maritano Guillermo Chapman III Flor de
Fonseca Tel: (507) 264-6833 Fax: (507) 263-4096 Apdo. 11181 Panama 6,
Rep. de Panama
Banco Nacional
de Panama Maria Isabel Fraser Calamari Militza Hernandez Santiago Carmen
Herrera Tristan Tel: (507) 263-5151/7527 Fax: (507) 269-0091 Apdo. 5220,
Panama 5, Rep. de Panama
Bicsa Valores
(Panama), S.A. Arturo Cuevillas Leon Jose Francisco Ulate Federico Echandi
Gurdian Guillermo Clark Cano Tel: (507) 263-6822 Fax: (507) 263-6393
Apdo. 600, Panama 1, Rep. de Panama
Isthmian
Financial Services Inc. Michele M. de Benedetti-Lloyd Smith Julio C.
Benedetti Tel: (507) 226-1769/5810/263-9766 Fax: (507) 226-3967/264-7556
Apdo. 55-2647 Paitilla, Rep. de Panama
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