Capital Markets
From The Report: Panama 2015
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Panama’s capital markets are highly internationalised, with the financial stability of a dollarised economy helping attract global firms looking to expand their Latin American footprint. Though the country has already established itself as a regional banking hub, Panama’s non-bank financial sector still has room to grow. While insurance sector assets nearly tripled in the decade to 2013, from $704.2m to $2.05bn, their share of GDP remained virtually unchanged, at 5-5.5%. Similarly, the total market capitalisation of the Panama Stock Exchange stood at $13.44bn at end-2013, equivalent to 33.3% of GDP, down from 42.8% in 2005 and 36.3% in 2010, and still below the 46.7% recorded on Brazil’s BOVESPA. Panama’s financial markets are expected to benefit from continued growth in 2015 with reasonably low inflation, as efforts toward greater transparency, efficiency and global integration continue.

This chapter contains interviews with Felipe Chapman, President, Bolsa de Valores de Panamá; and Jorge Vallarino Miranda, Executive Vice-President, Global Bank.

Articles from this Chapter

Overview

Market makers: Non-bank financial sector seeks to match banking sophistication
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The capital markets in Panama are highly internationalised, both in terms of capital flows and the institutions involved, with the financial stability of a dollarised economy helping attract global firms looking to expand their Latin American footprint. The country has already established itself as a regional banking hub, with 76 local and international banks operating in a country with a population of 3.86m. However, Panama’s non-bank financial sector still has room to grow. While insurance sector…

Interview

Felipe Chapman, President, Bolsa de Valores de Panamá: Interview
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Interview:Felipe Chapman How will 2015 market growth compare to 2014? FELIPE CHAPMAN: The volume of transactions grew by 4.7% year-on-year in 2014, with trading close to $5.3bn. Secondary market activity increased due to a rise in transactions involving common shares and debt instruments – mainly private sector bonds. Meanwhile, there was a slight decrease in the volume of activity in government securities auctions, mainly due to the fact that there were fewer treasury auctions that year. The…

Interview

Jorge Vallarino Miranda, Executive Vice-President, Global Bank: Interview
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Interview:Jorge Vallarino Miranda How feasible is the integration of Central American capital markets? What would its benefits be? JORGE VALLARINO MIRANDA: It is certainly feasible, following the example of what has been done in other regions such as Europe or South America. It is important to take into account that countries in Central America have different regulations and tax regimes. These differences are the main challenges to integration. The main benefit of integration is that it broadens…

Analysis

EGI: Diversified conglomerate
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The Company Empresa General de Inversiones (EGI) is a holding company listed on the Panama Stock Exchange (Bolsa de Valores de Panamá, BVP) under the ticker symbol EGIN. The holding company has investments in three operating companies: Empresa General de Capital (EGC), BG Financial Group and Empresa General de Petróleos (EGP), with each focusing on a different sector. EGC primarily invests in the energy and telecommunications sectors, while BG Financial Group focuses on banking and financing activities through its ownership of the largest bank in both Panama and Central America – Banco General. For its part, EGP focuses on the distribution…

Analysis

GB Group: Financial services
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The Company GB Group is a publicly traded holding company, listed on the Panama Stock Exchange (Bolsa de Valores de Panamá, BVP) under the ticker symbol GBGR. The company owns a 100% stake in Global Bank Corporation – which is the second-largest non-government-owned Panamanian bank in the country. Founded in 1994 as a universal model bank, Global Bank Corporation’s assets reached the billion-dollar mark in 2006 and now stand at around $5.1bn. The company currently has $4bn in loans, $2.9bn in deposits and regulatory capital of $486m. In addition, it has an international investment-grade credit rating of “BBB-” from both Fitch and Standard…

Analysis

Grupo ASSA: Financial services
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The Company Grupo ASSA is a holding company listed on the Panama Stock Exchange (Bolsa de Valores de Panamá, BVP) under the ticker symbol ASSA. The group has operations across Central America in three main sectors: banking and financing activities, insurance and reinsurance, and other strategic investments, which account for 45.9%, 42.1% and 11.1% of the group’s revenues, respectively. The company’s subsidiaries are among the leaders in their respective industries. ASSA Compañía de Seguros (Panama), for example, is the number two insurance company in the country, and received an “A” (excellent) financial strength rating and an “a”…

Analysis

Grupo Melo: Agribusiness
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The Company Grupo Melo is an industry leader in a variety of agro-industrial activities across Panama, with a historical focus on poultry products. The company is publicly traded, listed on the Panama Stock Exchange (Bolsa de Valores de Panamá, BVP) under the ticker symbol MELO. Grupo Melo has expanded to have a national presence through its 196 points of sale, operating through an internal structure made up of eight separate divisions. The company’s portfolio includes restaurants, pet services, gardening, industrial equipment sales and construction material outlets. Together, these eight divisions generated roughly $424.8m in group sales…

Analysis

Panama Power Holdings: Renewable energy
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The Company Panama Power Holdings is a holding company that is traded on the Panama Stock Exchange (Bolsa de Valores de Panamá, BVP) under ticker symbol PPHO. Through its subsidiaries, the company operates and develops renewable energy generation projects. Its primary focus is run-of-the-river hydroelectric power stations. Panama Power Holdings operates four hydroelectric power plants; Hydro Caisán, with 72 MW installed capacity; Generadora Pedregalito, with 20 MW; Generadora Alto Valle, with 15.7 MW; and Generadora Rio Chico, with 12.5 MW. The company also owns 65% of Inversiones La Manguera, a hydroelectric power plant located in Costa Rica. Growth…

Analysis

Rey Holdings: Retail
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The Company Rey Holdings is a publicly traded holding company, listed on the Panama Stock Exchange (Bolsa de Valores de Panamá, BVP) under the ticker symbol REYH. The company owns 100% of Empresas Rey, which in turn owns 100% of Immobiliaria Don Antonio, Agroindustrial Rey and Setrey. Although the company was officially founded in 2000, it can trace its origins as far back as 1911. Together, these companies own and operate three different supermarket chains throughout the country, including Supermercados Rey, with 24 branches; Supermercados Romero, with 10 locations; and Supermercados Mr. Precio, which has 10 branches. In addition, the group…