Norton Rose Fulbright advises BBVA on US$1.4 billion credit facility for Panama

Global law firm Norton Rose Fulbright represented Banco Bilbao Vizcaya Argentaria (BBVA) on a JPY-denominated credit facility equivalent to approximately US$1.4 billion for the Republic of Panama. The transaction closed on January 20, 2026.

The credit facility is supported by guarantees from the World Bank Group, with a first-loss guarantee issued by the International Bank for Reconstruction and Development (IBRD) and a second-loss guarantee issued by the Multilateral Investment Guarantee Agency (MIGA).

This transaction is the first financing of its kind in Latin America to feature a first-loss and second-loss guarantee structure, providing coverage of up to 95 percent of the guaranteed loan amount and associated interest-the highest level of coverage granted by MIGA.

The financing is part of the Government of Panama's public debt management strategy and will be used to refinance existing Central Government debt with maturities concentrated in the first four months of 2026.

"We were pleased to advise BBVA on this innovative financing, which demonstrates how multilateral guarantees can be structured to deliver exceptional credit support while addressing sovereign debt-management objectives," said José Cobeña (São Paulo), who led Norton Rose Fulbright's representation. "Not only does this transaction advance Panama's financing goals, but it also sets an important regional precedent."

Norton Rose Fulbright's deal team included José Cobeña, Diego Brandao, Cameron Royse, Juliana Liano Souza, João Melhado (São Paulo), David Milligan (London), Denton Nichols (Houston) and Kevin Prokup (New York).