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As filed with the Securities and Exchange Commission on February , 2003
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REGISTRATION STATEMENT
UNDER
SCHEDULE B
OF
THE SECURITIES ACT OF 1933
REPUBLIC OF PANAMA
(Name of Registrant)
Roberto Alfaro
Ambassador of Panama
Embassy of Panama
2862 McGill Terrace, N.W.
Washington, D.C. 20008
(Name and address of authorized agent in the United States)
Copies to:
Eli Whitney Debevoise II, Esq.
Vijay S. Tata, Esq.
Arnold & Porter
399 Park Avenue
New York, New York 10022
Approximate date of commencement of proposed sale to the public: From time to time after this Registration Statement becomes effective.
The securities being registered hereby are to be offered on a delayed or continuous basis pursuant to Releases No. 33-6240 and 33-6424 under the Securities Act of 1933.
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to Be Registered | Amount to Be Registered | Proposed Maximum | Proposed Maximum | Amount of Registration Fee (3) | ||||
Debt Securities and Warrants | $1,000,000,000.00 | 100% | $1,000,000,000.00 | $76,360.00 | ||||
| (1) | Estimated solely for the purpose of calculating the registration fee. |
| (2) | Exclusive of accrued interest, if any. |
| (3) | This Registration Statement is being filed pursuant to Rule 429. This Registration Statement and the Prospectus included herein relate to $170,000,000.00 aggregate principal amount of debt securities covered by the Registrant’s Registration Statement No. 333-14262 with respect to which the applicable registration fees have been paid. The remaining $830,000,000.00 aggregate principal amount of securities is to be registered hereby for a fee of $76,360.00, $36,508.73 of which is being paid in cash herewith and $39,851.27 of which is to be drawn from the Registrant’s available balance with the Securities and Exchange Commission. |
The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
This Registration Statement and the Prospectus included herein relate to $170,000,000.00 aggregate principal amount of debt securities covered by the Registrant’s Registration Statement No. 333-14262. |
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Explanatory Note
This Registration Statement and the Prospectus included herein and constituting a part hereof relate to $170,000,000.00 aggregate principal amount of debt securities covered by the Republic of Panama’s Registration Statement No. 333-14262.
The debt securities and/or warrants may be offered from time to time pursuant to Releases No. 33-6240 and 33-6424 under the Securities Act of 1933 as separate issues of debt securities and/or warrants on terms and in the manner to be specified in Prospectus Supplements to be delivered in connection with each such offering.
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The information in this prospectus is not complete and may be changed. Panama may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Subject to Completion, dated February 13, 2003
PROSPECTUS
REPUBLIC OF PANAMA
$1,000,000,000
Debt Securities
Warrants
Panama may offer up to $1,000,000,000 (or its equivalent in other currencies) aggregate principal amount of its debt securities with or without warrants to purchase debt securities.
Panama may offer any combination of debt securities and/or warrants from time to time in one or more offerings. Panama will provide specific terms of these securities in supplements to this prospectus. You should read this prospectus and any prospectus supplement carefully before you invest.
Panama may sell the securities directly, through agents designated from time to time or through underwriters or dealers.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined whether this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
You should rely only on the information contained or incorporated by reference in this prospectus or any prospectus supplement. Panama has not authorized anyone to provide you with different or additional information. Panama is not making an offer of these debt securities or warrants in any place where the offer is not permitted by law. You should assume that the information in this prospectus, the prospectus supplement accompanying this prospectus and the documents incorporated by reference are accurate only as of the respective dates of those documents.
The date of this prospectus is February , 2003.
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WHERE YOU CAN FIND MORE INFORMATION
Panama voluntarily files annual reports with the Securities and Exchange Commission (SEC). These reports and any amendments to these reports include certain financial, statistical and other information about Panama, and may be accompanied by exhibits. You may read and copy any document Panama files with the SEC at the SEC’s public reference room in Washington, D.C. You may also obtain copies of these documents from the public reference room in Washington by paying a fee. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room or log on to http://www.sec.gov, where the SEC maintains an Internet site that contains reports and other information filed by Panama.
The SEC allows Panama to “incorporate by reference” into this prospectus the information Panama files with it. This means that Panama can disclose important information to you by referring you to those documents. Information that is incorporated by reference is an important part of this prospectus. Panama incorporates by reference the following documents:
| ¨ | Panama’s Annual Report on Form 18-K for the year ended December 31, 2001; and |
| ¨ | All amendments to Panama’s Annual Report on Form 18-K for the year ended December 31, 2001 filed prior to the date of this prospectus. |
Panama also incorporates by reference all future annual reports and amendments to annual reports until it sells all of the debt securities and warrants covered by this prospectus. Each time Panama files a document with the SEC that is incorporated by reference, the information in that document automatically updates information contained in previously filed documents.
You may request a free copy of these filings by writing or calling the Embassy of Panama at the following address:
Embassy of Panama
2862 McGill Terrace, N.W.
Washington, D.C. 20008
Attn: Finance Section (202) 483-1407
Unless otherwise specified in the applicable prospectus supplement, Panama will use the net proceeds from the sale of the securities for the general purposes of Panama, including the refinancing of domestic and external indebtedness of Panama and for other budgetary purposes.
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Panama may issue debt securities, with or without warrants, in distinct series at various times, and these debt securities will be issued pursuant to a fiscal agency agreement between Panama and the fiscal agent. The financial terms and other specific terms of a particular series of debt securities will be described in a prospectus supplement relating to such securities. If the terms or conditions described in the prospectus supplement that relates to your series of debt securities differ from the terms or conditions described in this prospectus, you should rely on the terms or conditions described in the prospectus supplement.
In this description of debt securities, you will see some initially capitalized terms. These terms have very particular, legal meanings, and you can find their definitions under the heading “Glossary” below.
General
The prospectus supplement that relates to your debt securities will specify the following terms:
| ¨ | the specific title or designation of the debt securities; |
| ¨ | the principal amount of the debt securities; |
| ¨ | the price of the debt securities; |
| ¨ | the stated maturity date on which Panama must repay principal; |
| ¨ | the rate of any interest the debt securities will bear and, if variable, the method by which the interest rate will be calculated; |
| ¨ | the dates when any interest payments will be made; |
| ¨ | the date or dates from which any interest will accrue; |
| ¨ | the record dates for any interest payable on an interest payment date; |
| ¨ | the circumstances and terms, if any, under which Panama may redeem the debt securities before maturity; |
| ¨ | the circumstances and terms, if any, under which the holders of the debt securities may opt to have their respective debt securities prepaid; |
| ¨ | the circumstances and terms, if any, under which the holders of the debt securities may opt to obligate Panama to redeem or repurchase their respective securities, either pursuant to any sinking fund or analogous provisions; |
| ¨ | the currency or currencies in which such debt securities are denominated, which may be U.S. dollars, another foreign currency or units of two or more currencies; |
| ¨ | the currency or currencies for which such debt securities may be purchased and in which principal, premium, if any, and interest may be payable; |
| ¨ | if any amount payable in respect of the debt securities will be determined based on an index or formula, the method by which such amount will be determined; |
| ¨ | if the debt securities will be issued upon the exchange or conversion of other debt securities, the specific terms relating to this exchange or conversion; |
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| ¨ | whether any part or all of the debt securities will be in the form of a global security and the circumstances in which a global security will be exchangeable for certificated (physical) securities; |
| ¨ | if the debt securities will be listed, the stock exchange on which they will be listed; and |
| ¨ | any other terms of the debt securities. |
If applicable, the prospectus supplement may also describe any United States federal or Panamanian income tax consequences and special considerations applicable to that particular series of debt securities.
Any moneys held by the fiscal agent in respect of debt securities and remaining unclaimed for two years after those amounts have become due and payable shall be returned to Panama. After the return of these moneys to Panama, the holder of this debt security may thereafter look only to Panama for any payment.
Panama may replace the fiscal agent at any time, subject to the appointment of a replacement fiscal agent. The fiscal agent is an agent of Panama and is not a trustee for the holders of the debt securities.
Status of the Debt Securities
The debt securities will be direct, unconditional and general obligations of Panama. Except as described under the heading “Negative Pledge” below, the debt securities are unsecured obligations of Panama. Panama has pledged its full faith and credit for the due and punctual payment of principal of and interest on the debt securities.
The debt securities of each series will rank equally in right of payment with all other indebtedness issued in accordance with the fiscal agency agreement and with all other unsecured and unsubordinated Indebtedness of Panama.
Form of Debt Securities
Unless otherwise specified in the prospectus supplement, debt securities denominated in U.S. dollars will be issued:
| ¨ | only in fully registered form; |
| ¨ | without interest coupons; and |
| ¨ | in denominations of $1,000 and greater multiples. |
Debt securities denominated in another monetary unit will be issued in the denominations set forth in the applicable prospectus supplement.
Payment
Unless otherwise specified in the applicable prospectus supplement, principal of, interest on, and premium (if any) on the debt securities will be payable in U.S. dollars at the New York office of the fiscal agent to the registered holders of the debt securities on the related record date.
The register of holders of debt securities will be kept at the New York office of the fiscal agent.
Negative Pledge
Panama undertakes with respect to each series of debt securities that, as long as any debt securities of that series remain outstanding, it will not create or permit to subsist any Lien upon the whole or any part of its assets or revenues to secure any Public External Indebtedness of Panama, unless:
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| ¨ | the debt securities of such series are secured equally and ratably with such Public External Indebtedness; or |
| ¨ | the debt securities of such series have the benefit of such other security, guarantee, indemnity or other arrangement as shall be approved by the holders of the debt securities of such series as provided under the heading “Meetings and Amendments” below. |
Notwithstanding the foregoing, Panama may create or permit to subsist:
| ¨ | any Lien upon property to secure Public External Indebtedness of Panama incurred for the purpose of financing the acquisition of such property and any renewal or extension of any such Lien which is limited to the original property covered thereby and which secures only the renewal or extension of the original secured financing; |
| ¨ | any Lien existing on such property at the time of its acquisition to secure Public External Indebtedness of Panama and any renewal or extension of any such Lien which is limited to the original property covered thereby and which secures only the renewal or extension of the original secured financing; |
| ¨ | any Lien in existence on the date of the fiscal agency agreement, including any renewal or extension thereof which secures only the renewal or extension of the original secured financing; |
| ¨ | any Lien contemplated as of July 17, 1996 under the agreements (as they may be amended) implementing the Republic of Panama 1995 Financing Plan dated October 4, 1995 sent to the international financial community with the communication dated September 15, 1995 from the Minister of Planning and Economic Policy of Panama and explanatory communications relating thereto and implementing documentation therefor, including any Lien to secure obligations under the collateralized bonds issued thereunder (the “Collateralized Bonds”); |
| ¨ | any Lien securing Public External Indebtedness of Panama issued upon surrender for cancellation of the Collateralized Bonds or the principal amount of any indebtedness of Panama outstanding as of the date of the 1995 Financing Plan, in each case, to the extent such Lien is created to secure such Public External Indebtedness on a basis comparable to the Collateralized Bonds and the principal amount of Public External Indebtedness so secured is no greater than the principal amount of Collateralized Bonds or such other indebtedness so cancelled; |
| ¨ | any Lien securing Public External Indebtedness incurred for the purpose of financing all or part of the costs of the acquisition, construction or development of a project and any renewal or extension of such Lien, provided that: |
| à | the holders of such Public External Indebtedness expressly agree to limit their recourse to the assets and revenues of such project as the principal source of repayment of such Public External Indebtedness; and |
| à | the property over which such Lien is granted consists solely of such assets and revenues; |
| ¨ | any Lien on the properties or revenues of the Development Trust Fund created by Republic of Panama Law No. 20 of |
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May 15, 1995, provided that the equivalent in U.S. dollars of the amount secured by such Liens shall not at any time exceed the amount of all contributions to the Development Trust Fund from: |
| à | the net proceeds from the privatization of publicly owned companies or the initial payment for concessions granted to the private sector; |
| à | the proceeds from sales conducted of any Interoceanic Region Assets by the Interoceanic Region Authority; |
| à | sums bequeathed or donated to the Development Trust Fund by any person other than Panama or any governmental agency or affiliate thereof; and |
| à | any earnings on properties or revenues received pursuant to the three bullet points immediately above, and any renewal or extension of any such Lien which is limited to the original properties or revenues covered thereby; and |
| ¨ | Liens in addition to those permitted under the bullet points above, and any renewal or extension thereof, provided that the aggregate amount of Public External Indebtedness secured by such additional Liens shall not exceed the equivalent of $25,000,000. |
Default; Acceleration of Maturity
Each of the following events will be an event of default with respect to each series of debt securities:
(a) default by Panama in any payment of principal of any debt securities of such series for 15 days;
(b) default by Panama in any payment of interest on any debt securities of such series for 30 days;
(c) failure of Panama to perform any other obligation under the debt securities of that series, which continues for 60 days after the holder of any debt securities of that series has provided to the fiscal agent written notice requiring that such default be remedied;
(d) acceleration of any aggregate principal amount of Public Indebtedness of Panama that exceeds $25,000,000 (or its equivalent in any other currency) by reason of an event of default arising from Panama’s failure to make any payment of principal or interest under this Public Indebtedness when due;
(e) failure of Panama to make any payment in respect of the Public Indebtedness of Panama in an aggregate principal amount in excess of $25,000,000 (or its equivalent in any other currency) when due, which continues for 30 days after the holder of any debt securities of that series has provided to the fiscal agent written notice requiring that such default be remedied;
(f) declaration by Panama of a moratorium with respect to the payment of principal of, or premium or interest on, Public External Indebtedness of Panama which does not expressly exclude the debt securities of that series; or
(g) denial or repudiation by Panama of its obligations under the debt securities of that series.
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If an event of default described in clause (a), (b), (f) or (g) above occurs with respect to any series of debt securities, then each holder of debt securities of that series may declare the principal of and any accrued interest on the debt securities it holds immediately due and payable.
If an event of default described in clause (c), (d) or (e) above occurs with respect to any series of debt securities, then the holders of not less than 25% in principal amount of all debt securities of that series then outstanding may declare the principal of and any accrued interest on all the debt securities of that series then outstanding immediately due and payable. Debt securities held directly or indirectly by or on behalf of Panama, any political subdivision or instrumentality thereof shall not be considered “outstanding” for this purpose.
Holders of debt securities may exercise these rights only by providing a written demand to Panama and the fiscal agent at its New York office at a time when the event of default is continuing.
Redemption and Repurchase
Unless otherwise set forth in the applicable prospectus supplement, the debt securities will not be redeemable prior to maturity at the option of Panama or the registered holders of these debt securities.
Panama may at any time purchase debt securities in any manner and for any price. These debt securities purchased by Panama may, at its discretion, be held, resold or cancelled.
Meetings and Amendments
General. A meeting of holders of debt securities of any series may be called at any time:
| ¨ | to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided for in the fiscal agency agreement or the debt securities of that series; or |
| ¨ | to modify, amend or supplement the terms of the debt securities of that series or the fiscal agency agreement. |
Panama may at any time call a meeting of holders of debt securities of a series for any purpose. This meeting would be held at the time and place determined by Panama. If an event of default occurs and Panama or the holders of at least 10% of the aggregate principal amount of the outstanding debt securities of a series request (in writing) the fiscal agent to call a meeting, the fiscal agent will call such a meeting.
Notice. The notice of a meeting will set forth the time and place of the meeting and in general terms the action proposed to be taken at the meeting. This notice shall be given as provided in the terms of the debt securities. In addition, this notice shall be given between 30 to 60 days before the meeting date; however, in the case of any meeting to be reconvened after adjournment for lack of a quorum, this notice shall be given between 15 and 60 days before the meeting date.
Voting; Quorum. A person who holds outstanding debt securities of a series or is duly appointed to act as proxy for a holder of these debt securities will be entitled to vote at a meeting of holders of the debt securities of that series. The presence at the meeting of persons entitled to vote a majority of the principal amount of the outstanding debt securities of a series shall constitute a quorum with respect to that series of debt securities.
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If a quorum is not present within 30 minutes of the time appointed for the meeting, the meeting may be adjourned for a period of at least 10 days as determined by the chairman of the meeting prior to the adjournment of the meeting. If the meeting is convened at the request of the holders, however, then the meeting shall be dissolved.
In the absence of a quorum at an adjourned meeting, this adjourned meeting may be further adjourned for a period of at least 10 days as determined by the chairman of the meeting. Notice of the reconvening of an adjourned meeting shall be given only once. This notice shall state expressly the percentage of the principal amount of the outstanding debt securities of that series which shall constitute a quorum. Subject to the foregoing, at the reconvening of a meeting adjourned for a lack of a quorum, the presence of persons entitled to vote 25% in principal amount of the outstanding debt securities of a series shall constitute a quorum with respect to that series of debt securities for the taking of any action set forth in the notice of the original meeting.
In addition, any meeting at which a quorum is present may be adjourned by the vote of a majority of the principal amount of the outstanding debt securities of the series represented at the meeting, and the meeting may be held as so adjourned without further notice.
If a quorum is present at the meeting, any resolution and all matters (other than those matters identified below that require the consent of all holders of the debt securities of a series) shall be effectively passed or decided by the vote of the persons entitled to vote 66 2/3% in aggregate principal amount of the outstanding debt securities of such series represented and voting at the meeting.
Regulations. The fiscal agent may make reasonable and customary regulations as it deems advisable for any meeting with respect to:
| ¨ | the proof of the holding of debt securities of a series; |
| ¨ | the appointment of proxies in respect of holders of registered debt securities of a series; |
| ¨ | the record date for determining the registered owners of registered debt securities of a series; |
| ¨ | the adjournment and chairmanship of such meeting; |
| ¨ | the appointment and duties of inspectors of votes, certificates and other evidence of the right to vote; and |
| ¨ | other matters concerning the conduct of the meeting that the fiscal agent deems appropriate. |
Chairman. The fiscal agent will appoint a temporary chairman of the meeting by an instrument in writing. If Panama or the holders of the debt securities of a series called the meeting, however, then Panama or the holders calling the meeting, as the case may be, will appoint a temporary chairman by an instrument in writing.
A permanent chairman and a permanent secretary of the meeting shall be elected by the vote of the persons entitled to vote a majority of the principal amount of the outstanding debt securities of the series represented and voting at the meeting. The chairman of the meeting shall have no right
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to vote, except as a holder of debt securities of that series or proxy.
Record. A record, and at least one duplicate, of the proceedings of each meeting of holders will be prepared. One copy of the record of each meeting will be delivered to Panama and another to the fiscal agent to be preserved by the fiscal agent.
Amendments. Unless the unanimous consent of holders of debt securities of an affected series is required as specified below, with
| ¨ | the affirmative vote, in person or by proxy, of the holders of at least 66 2/3 % of the aggregate principal amount of the outstanding debt securities of a series represented and voting at a duly called and held meeting; or |
| ¨ | the written consent of the holders of at least 66 2/3 % in aggregate principal amount of the outstanding debt securities of a series: |
(i) Panama and the fiscal agent may modify, amend or supplement the terms of the debt securities of a series or, insofar as it affects the debt securities of that series, the fiscal agency agreement, in any way and (ii) holders of debt securities of a series may make, take or give any request, demand, authorization, direction, notice, consent, waiver or action provided by the fiscal agency agreement or the debt securities of such series to be made, given or taken by holders of debt securities of such series.
The following actions may only be taken with the written consent or affirmative vote of the holder of each debt security of an affected series:
| ¨ | changing the due date for the payment of the principal of, any installment of interest on, or premium (if any) on the debt securities of such series; |
| ¨ | reducing the principal amount of the debt securities of such series; |
| ¨ | reducing the portion of the principal amount which is payable in the event of an acceleration of the maturity of the debt securities of such series; |
| ¨ | reducing the interest rate on the debt securities of such series; |
| ¨ | reducing the premium, if any, payable upon the redemption of any debt securities of such series; |
| ¨ | changing the currency in which any amount in respect of the debt securities of that series is payable; |
| ¨ | changing the required places at which any amount in respect of the debt securities of that series is payable; |
| ¨ | shortening the period during which Panama is not permitted to redeem the debt securities of that series; |
| ¨ | permitting Panama to redeem the debt securities of the affected series, if Panama is not otherwise permitted to redeem the debt securities of that series; |
| ¨ | reducing the proportion of the principal amount of the debt securities of that series that is required: |
| à | to modify, amend or supplement the fiscal agency agreement or the terms and conditions of the debt securities of that series, or |
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| à | to make, take or give any request, demand, authorization, direction, notice, consent, waiver or other action; or |
| ¨ | changing the obligation of Panama to pay additional amounts. |
Panama and the fiscal agent may, without the vote or consent of any holder of debt securities of a series, modify, amend or supplement the fiscal agency agreement or the debt securities of any series for the purpose of:
| ¨ | adding to the covenants of Panama; |
| ¨ | surrendering any right or power conferred upon Panama; |
| ¨ | securing the debt securities of that series pursuant to the requirements of the debt securities or otherwise; |
| ¨ | correcting any defective provision contained in the fiscal agency agreement or in the debt securities of that series; or |
| ¨ | amending the fiscal agency agreement or the debt securities of that series in any manner that Panama and the fiscal agent may determine and that does not adversely affect the interest of any holder of debt securities of that series. |
Any modification, amendment or supplement approved in the manner described in this section shall be binding on the holders of debt securities of such series.
Judgment Currency
If a court renders a judgment in respect of amounts due to a holder of a debt security permitting Panama to pay such amounts in a currency (“judgment currency”) other than the currency in which the debt security was required to be paid by its terms (“debt security currency”), Panama and such holder are deemed to have agreed, to the fullest extent permitted under applicable law, that:
| ¨ | the rate of exchange for determining the amount of such judgment shall be based on the rate at which such holder, using normal banking procedures, could purchase the debt security currency with the judgment currency in the relevant principal financial center for the debt security currency, two business days preceding the date of such judgment; and |
| ¨ | if on the business day following the holder’s receipt of such payment in the judgment currency, such holder is not able, in accordance with normal banking procedures, to purchase with the judgment amount at least the amount of debt security currency that was due to him under the original terms of the debt security, Panama will indemnify such holder for the shortfall; if such holder is able to purchase with such judgment currency an amount of debt security currency greater than that to which he would have been entitled, and if all of Panama’s obligations to such holder under the debt securities are fully paid, such holder agrees to remit any excess to Panama. |
Tax Withholding; Payment of Additional Amounts
All payments of principal and interest in respect of the debt securities of any series by Panama will be made without withholding or deduction for or on account of any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by Panama or any other jurisdiction from which
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or through which payment is made to holders of debt securities in respect of the debt securities or any political subdivision or authority thereof or therein having power to tax (together “Taxes”), unless such withholding or deduction is required by law. In such event, Panama shall pay such additional amounts as will result in receipt by the holders of debt securities of such amounts as would have been received by them had no such withholding or deduction been required, except that no such additional amounts shall be payable with respect to any debt security of any series:
(a) to a holder where such holder is liable to pay such Taxes in respect of any debt security of such series by reason of such holder’s having some connection with Panama other than the mere holding of such debt security of such series or the receipt of principal and interest in respect thereof.
(b) to a holder who is liable for such Taxes by reason of such holder’s failure to comply with any reasonable certification, identification or other reporting requirement concerning the nationality, residence, identity or connection with Panama, or any political subdivision or taxing authority thereof or therein, of such holder or the holder of any interest in such debt security of such series or rights in respect thereof, if compliance is required by Panama, or any political subdivision or taxing authority thereof or therein, as a precondition to exemption from such deduction or withholding; provided, however, that the limitations on Panama’s obligations to pay additional amounts shall not apply if such certification, identification, or other reporting requirements would be materially more onerous, in form, in procedure, or in substance of information disclosed by the relevant holders or beneficial owners than comparable information or other reporting requirements imposed by United States tax law, regulation or administrative practice; or to a holder who is liable for such Taxes by reason of the failure of such holder to present such holder’s debt security for payment (where such presentation is required) within 30 calendar days after the date on which such payment thereof became due and payable or is duly provided for and notice thereof is given to the holder, whichever occurs later, except to the extent that such holder would have been entitled to additional amounts in respect of such Taxes on presenting such debt security for payment on any date within such 30 calendar days.
Any reference herein to “principal” and/or “interest” shall be deemed to include any additional amounts that may be payable under the debt securities.
Global Securities
The prospectus supplement that relates to your debt securities indicates whether any of the debt securities you purchase will be represented by a global security. The aggregate principal amount of any global security equals the sum of the principal amount of all the debt securities it represents. The global security will be registered in the name of the depositary identified in the prospectus supplement or its nominee, and will be deposited with the depositary, its nominee or a custodian.
Limitations on Your Ability to Obtain Debt Securities Registered in Your Name. The global security will not be registered in the name of any person other than the depositary or its nominee. Similarly, the global security will not be exchanged for debt securities that are registered in the name of any person other than the depositary or its nominee. An exception to these restrictions would be made only if:
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| ¨ | the depositary notifies Panama that it is unwilling, unable or no longer qualified to continue to act as depositary and Panama does not appoint a successor depositary within 90 days; |
| ¨ | at any time Panama decides it no longer wishes to have all or part of the debt securities represented by a global security; or |
| ¨ | an event of default has occurred and is continuing with respect to the series of debt securities represented by the global security. |
In those circumstances, the depositary will determine in whose names to register any certificated (physical) debt securities issued in exchange for the global security. These certificated (physical) debt securities will be issued:
| ¨ | only in fully registered form; |
| ¨ | without interest coupons; and |
| ¨ | in denominations of $1,000 and greater multiples. |
The depositary or its nominee will be considered the sole owner and holder of the global security for all purposes. As a result:
| ¨ | you cannot have debt securities registered in your name for so long as they are represented by the global security; |
| ¨ | you cannot receive certificated (physical) debt securities in your name in exchange for your beneficial interest in the global security; |
| ¨ | you will not be considered to be the owner or holder of the global security or any debt securities represented by the global security for any purpose; |
| ¨ | you cannot assert any right of a holder of the debt securities unless you are authorized by the depositary and the participant through which you hold your beneficial interest; and |
| ¨ | all payments on the global security will be made to the depositary or its nominee. |
In some jurisdictions, certain types of purchasers (such as some insurance companies) are not permitted to own securities represented by a global security. These laws may limit your ability to sell or transfer your beneficial interest in the global security to these types of purchasers.
Beneficial Interests in and Payments on Global Security. Institutions that have accounts with the depositary or a nominee of the depositary, such as securities brokers and dealers, are called participants. Only participants, and persons who hold beneficial interests through participants, can own a beneficial interest in the global security. The depositary keeps records of the ownership and transfer of beneficial interests in the global security by its participants. In turn, participants keep records of the ownership and transfer of beneficial interests in the global security by other persons (such as their customers). No other records of the ownership and transfer of beneficial interests in the global security will be kept.
When the depositary receives payment of principal or interest on the global security, the depositary is expected to credit its participants’ accounts in amounts that correspond to their respective beneficial interests in the global security. In turn, after the participants’ accounts are credited, the
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participants are expected to credit the accounts of the owners of beneficial interests in the global security in amounts that correspond to the owners’ respective beneficial interests in the global security.
The depositary and its participants establish policies and procedures that govern payments, transfers, exchanges and other important matters that affect owners of beneficial interests in the global security. The depositary and its participants may change these policies and procedures from time to time. Panama has no responsibility or liability for the records of the depositary or its participants relating to the ownership of beneficial interests in the global security. Also, Panama is not responsible for maintaining, supervising or reviewing those records or payments. Panama has no responsibility or liability for any aspect of the relationship between the depositary and its participants or for any aspects of the relationship between participants and owners of beneficial interests in the global security.
Panama may issue warrants to purchase debt securities, either separately or together with debt securities. If Panama issues any warrants, each issue of warrants will be issued under a warrant agreement between Panama and a bank or trust company, as warrant agent. The terms of any warrant agreement related to a specific issue of warrants and the specific terms of the issue of warrants will be described in the prospectus supplement that relates to those warrants. The prospectus supplement will describe the following terms:
| ¨ | the terms listed under the heading “Debt Securities” as they relate to the particular debt securities you have the right to purchase if you exercise your warrants; |
| ¨ | the amount of debt securities each warrant entitles you to purchase if you exercise your warrants and the purchase price of those debt securities; |
| ¨ | the procedures you must follow and the conditions you must satisfy to exercise your warrants; |
| ¨ | the dates on which your right to exercise your warrants begins and expires; |
| ¨ | the conditions, if any, under which Panama may cancel or terminate your warrants; |
| ¨ | whether and when your warrants and any debt securities issued together with your warrants may be sold or transferred separately; |
| ¨ | whether the certificates that represent the warrants will be issued in registered or bearer form, whether they will be exchangeable as between such forms and, if issued in registered form, whether the warrants can be transferred and registered; |
| ¨ | any special United States federal income tax considerations applicable to the issuance of your warrants; and |
| ¨ | any other terms of such warrants. |
The fiscal agency agreement, any warrant agreement, the debt securities and any warrants will be governed by and interpreted in accordance with the laws of the State of New York, without regard to any conflicts-of-laws principles that would
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require the application of the laws of a jurisdiction other than the State of New York; provided, however, that the laws of Panama will govern all matters concerning authorization and execution of all agreements and securities by Panama.
Panama is a foreign sovereign state. Consequently, your ability to sue Panama may be limited. Panama will irrevocably submit to the non-exclusive jurisdiction of any New York State or Federal court in New York City in any related proceeding (i.e., any suit, action or proceeding arising out of or relating to the debt securities or the warrants) and Panama will irrevocably agree that all claims in respect of any related proceeding may be heard and determined in such New York State or Federal court.
Panama will appoint and will agree to maintain the person acting as or discharging the function of Consul General of the Republic of Panama in New York City as its process agent to receive, on behalf of Panama and its property, service of copies of the summons and complaint and any other process which may be served in any related proceedings. The address of the office of the process agent is:
1212 Avenue of the Americas
10th Floor
New York, New York 10036
Panama will irrevocably waive, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of any related proceeding and any objection to any related proceeding on the grounds of venue, residence or domicile.
To the extent that Panama has or may acquire any immunity from jurisdiction of the courts or from any legal process in the courts, Panama will irrevocably agree not to claim and will irrevocably waive any immunity in respect of any related proceeding. Panama will agree that these waivers shall have the fullest scope permitted under the Foreign Sovereign Immunities Act of 1976 of the United States.
Notwithstanding the foregoing, the execution on or attachment of revenues, assets and property of Panama located in Panama through the Panamanian courts, both prior to and post-judgment, shall be subject to the provisions of Articles 1033, 1034, 1674 and 1963 of the Judicial Code of the Republic of Panama.
Moreover, Panama has not consented to service or waived sovereign immunity with respect to actions brought against it under United States federal securities laws or any State securities laws. In the absence of a waiver of immunity by Panama with respect to these actions, it would not be possible to obtain a judgment in such an action brought against Panama in a court in the United States unless the court were to determine that Panama is not entitled under the Foreign Sovereign Immunities Act to sovereign immunity with respect to such action. Further, even if a United States judgment could be obtained in such an action, it may not be possible to enforce in Panama a judgment based on such a United States judgment. Execution upon property of Panama located in the United States to enforce a United States judgment may not be possible except under the limited circumstances specified in the Foreign Sovereign Immunities Act.
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Panama may sell any combination of the debt securities and/or warrants in any of three ways:
| ¨ | through underwriters or dealers; |
| ¨ | directly to one or more purchasers; or |
| ¨ | through agents. |
Each prospectus supplement will set forth:
| ¨ | the name or names of any underwriters or agents; |
| ¨ | the purchase price of the securities of that series; |
| ¨ | the net proceeds to Panama from the sale of the securities; |
| ¨ | any underwriting discounts, agent commissions or other items constituting underwriters’ or agents’ compensation; |
| ¨ | any initial public offering price; and |
| ¨ | any discounts or concessions allowed or reallowed or paid to dealers. |
The securities may be sold from time to time in distinct series by different means at different prices that are negotiated and fixed or that vary based on market prices.
Underwriters used in the sale of securities will distribute these securities on a firm commitment basis. In this case, the underwriters will acquire these securities for their own account and may resell them from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or at varying prices to be determined at the time of sale. Panama may offer the securities to the public either through underwriting syndicates represented by managing underwriters or directly by underwriters. Unless otherwise set forth in the applicable prospectus supplement, the obligations of the underwriters to purchase the securities will be subject to certain conditions precedent and the underwriters will be obligated to purchase all such securities if any are purchased. The underwriters may change any initial public offering price and any discounts or concessions allowed or reallowed or paid to dealers.
Panama may also sell securities of any series directly to the public or through agents designated by Panama from time to time. Unless otherwise specified in the applicable prospectus supplement, an agent used in the sale of securities will sell the securities on a reasonable best efforts basis for the period of its appointment.
Panama may authorize agents, underwriters or dealers to solicit offers by certain specified entities to purchase the securities from Panama under “delayed delivery” contracts. Purchasers of securities under delayed delivery contracts will pay the public offering price plus accrued interest, if any, and will take delivery of these securities on a date or dates stated in the applicable prospectus supplement. Delayed delivery contracts will be subject only to those conditions set forth in the applicable prospectus supplement. The applicable prospectus supplement will set forth the commission payable for solicitation of these delayed delivery contracts.
Panama may offer the securities of any series to present holders of other securities of Panama as consideration for the purchase or exchange by Panama of other securities. This offer may be in connection with a publicly announced tender, exchange
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or other offer for these securities or in privately negotiated transactions. This offering may be in addition to or in lieu of sales of securities directly or through underwriters or agents as set forth in the applicable prospectus supplement.
Panama may agree to indemnify agents and underwriters against certain liabilities, including liabilities under the United States Securities Act of 1933, or to contribute to payments which the agents or underwriters may be required to make in respect of any of these liabilities. Agents and underwriters may engage in transactions with or perform services for Panama in the ordinary course of business.
The validity of the debt securities and warrants will be passed upon for Panama by Licenciada Alma Montenegro de Fletcher, the Procuradora de la Administración of Panama, or by a duly authorized attorney of the Procuraduría de la Administración and by Arnold & Porter, United States counsel to Panama, and for the underwriters, if any, by United States counsel and Panamanian counsel to the underwriters named in the applicable prospectus supplement.
As to all matters of Panamanian law, Arnold & Porter may rely on the opinion of the Procuradora de la Administración. As to all matters of United States law, the Procuradora de la Administración may rely on the opinion of Arnold & Porter. Certain statements with respect to matters of Panamanian law in this prospectus have been passed upon by the Procuradora de la Administración, and are made upon her authority.
Information included in this prospectus which is identified as being derived from a publication of, or supplied by, Panama or one of its agencies or instrumentalities is included on the authority of that publication as a public official document of Panama. All other information in this prospectus and the registration statement (of which this prospectus is a part) is included as a public official statement made on the authority of the Minister of Economy and Finance of Panama.
The authorized representative of Panama in the United States of America is the Ambassador of Panama to the United States of America, whose address is:
Embassy of Panama
2862 McGill Terrace, N.W.
Washington, D.C. 20008
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“Indebtedness” means any payment obligations (whether pursuant to a guarantee or otherwise), including any contingent liability, for borrowed money or arising from bonds, debentures, notes or similar instruments.
“Interoceanic Region Assets” means real property and properties reverting to Panama pursuant to the Panama Canal Treaty between Panama and the United States, dated September 7, 1977.
“Lien” means any lien, pledge, mortgage, security interest, deed of trust, charge or other encumbrance or preferential arrangement which has the practical effect of constituting a security interest with respect to the payment of any obligations with or from revenues or the proceeds of any asset of any kind whether in effect on the date the fiscal agency agreement becomes effective or at any time thereafter.
“Public External Indebtedness” means any Public Indebtedness which is not issued pursuant to agreements or evidenced by instruments that submit the resolution of all disputes arising thereunder to the exclusive jurisdiction of the courts of Panama.
“Public Indebtedness” means any Indebtedness of, or guaranteed by, Panama which:
| ¨ | is publicly offered or privately placed in securities markets; |
| ¨ | is in the form of, or represented by, bonds, notes or other securities or any guarantees thereof; |
| ¨ | is, or was intended at the time of issue to be, quoted, listed or traded on any stock exchange, automated trading system or over-the-counter or other securities market (including, without prejudice to the generality of the foregoing, securities eligible for sale pursuant to Rule 144A under the United States Securities Act of 1933 (or any successor law or regulation of similar effect)); and |
| ¨ | has an original maturity of more than one year or is combined with a commitment so that the original maturity of one year or less may be extended at the option of Panama to a period in excess of one year. |
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PART II
EXPENSES
The following is an estimate of the fees and expenses, other than underwriting discounts and commissions, in connection with the issuance and distribution of the securities that are the subject of this Registration Statement:
Securities and Exchange Commission filing fee | $ | 76,360.00 |
| |
NASD fee | $ | 30,500.00 |
| |
Costs of printing and preparing Registration Statement, Prospectus and other documents | $ | 30,000.00 | * | |
Fiscal agent fees and expenses | $ | 20,000.00 | * | |
Legal fees and expenses | $ | 150,000.00 | * | |
Blue sky and legal investment memoranda fees and expenses | $ | 10,000.00 | * | |
Miscellaneous | $ | 25,000.00 | * | |
Total | $ | 341,860.00 | * |
| * | Estimated |
AGREEMENT TO PROVIDE LEGAL OPINIONS
The Registrant hereby agrees to furnish copies of such legal opinions as required (including the opinion of the Procuradora de la Administración), in connection with any issue of debt securities under this Registration Statement, in post-effective amendments to this Registration Statement or in any report filed under the Securities Exchange Act of 1934, as amended, that is incorporated by reference in this Registration Statement.
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UNDERTAKINGS
The Registrant hereby undertakes:
(a) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(i) to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent post-effective amendment thereof) that, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement; and
(iii) to include any material information with respect to the plan of distribution not previously disclosed in this Registration Statement or any material change to such information in this Registration Statement;
provided, however, that the Registrant shall not be required to file a post-effective amendment, otherwise required by clause (i) or clause (ii) above, if the information required to be included in a post-effective amendment is contained in any report filed under the Securities Exchange Act of 1934 that is incorporated by reference in this Registration Statement.
(b) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities covered thereby, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) To remove from registration by means of a post-effective amendment any of the securities being registered that remain unsold at the termination of the offering.
(d) That, for the purpose of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as a part of a registration statement in reliance upon Rule 430A and contained in the form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act of 1933 shall be deemed to be part of this Registration Statement as of the time it was declared effective.
(e) That, for the purpose of determining any liability under the Securities Act of 1933, each filing of the Registrant’s annual report on Form 18-K or amendments thereto under the Securities Exchange Act of 1934 that is incorporated by reference in this Registration Statement shall be deemed to be a new registration statement relating to the securities offered thereby and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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CONTENTS OF REGISTRATION STATEMENT
This Registration Statement consists of:
1. | Facing Sheet. | |||
2. | Part I, consisting of the Prospectus. | |||
3. | Part II, consisting of pages numbered II-1 through II-4. | |||
4. | The following Exhibits: | |||
(1) | Form of Underwriting Agreement.* | |||
(2) | Fiscal Agency Agreement, including the form of Debt Securities.* | |||
(3) | Form of Warrant Agreement.** | |||
(4) | Opinion of the Procuradora de la Administracion of the Republic of Panama. | |||
(5) | Consent of the Procuradora de la Administracion of the Republic of Panama | |||
(included as part of Exhibit 4(4)). | ||||
(6) | Opinion of Arnold & Porter. | |||
(7) | Consent of Arnold & Porter (included as part of Exhibit 4(6)). | |||
(8) | Consent of the Minister of Economy and Finance of the Republic of Panama. | |||
| * | Previously filed as part of Panama’s Registration Statement under Schedule B, Registration No. 333-8558; each such exhibit is incorporated by reference herein and made a part of this Registration Statement. |
| ** | To be filed concurrently with the applicable Prospectus Supplement, either by amendment to Panama’s Annual Report on Form 18-K or in a post-effective amendment to this Registration Statement relating to a particular issue of debt securities or warrants. |
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SIGNATURE OF REGISTRANT
Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, each of whom is duly authorized to execute the foregoing in his official capacity, on February 13, 2003.
REPUBLIC OF PANAMA | ||
By: | /s/ DOMINGO LATORRACA M. | |
Domingo Latorraca M. Vice Minister of Economy and Finance | ||
AUTHORIZED REPRESENTATIVE | ||
By: | /s/ ROBERTO ALFARO | |
Roberto Alfaro Ambassador of Panama to the United States of America | ||
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