What Happened
Generadora Gatún, the gas-fired power plant in Colón, closed a $1.05 billion corporate bond offering that the company described as a historic milestone in capital markets. The issue carried an 18.4-year term and a 6.874% interest rate, making it one of the largest and longest private energy financings in Central America in recent years.
The bond was rated investment grade by Moody’s and Standard & Poor’s, with scores of Baa3 and BBB, respectively. The financing drew more than $4.6 billion in orders, more than four times the initial amount offered, underscoring strong demand from investors.
Investor Demand and Market Reach
More than 110 international investors took part in the roadshow, reflecting broad interest in the project and in Panama’s energy infrastructure. The company said the strong reception showed confidence in its operating strength and in Panama’s role as an energy hub in the region.
According to company executives, the transaction also improves the group’s financial structure by simplifying its capital platform. That kind of refinancing can help large infrastructure operators lock in long-term funding while positioning themselves for future investment.
Why It Matters for Panama
Generadora Gatún began operations in October 2024 on Isla Telfers in Colón and has an installed capacity of 670 MW. Its plant uses natural gas, a fuel increasingly presented as a bridge in the country’s power transition because of its efficiency and more stable pricing compared with more volatile energy inputs.
Mónica Lupiáñez, country manager of InterEnergy Group, said the transaction shows that Panama can attract large-scale financing when projects are backed by strategic assets and long-term planning. InterEnergy Group holds 51% of the company.
Miguel Bolinaga, president of AES Panamá, said natural gas is a key pillar of Panama’s energy transition because it supports efficiency and price stability. AES Panamá holds 49% of the company, with the Panamanian state as a shareholder.
Broader Significance
The deal strengthens Generadora Gatún’s position as a major player in Panama’s electricity sector and adds another example of international capital flowing into the country’s infrastructure market. For Panama, large financing transactions like this one can help support grid reliability, energy diversification and the integration of renewable power into the national system.
As the country continues to expand and modernize its power infrastructure, projects such as Generadora Gatún are likely to remain central to debates over energy security, investment, and the pace of the transition to cleaner generation.