Panama’s Global Bank yesterday (Wednesday) announced that Deutsche Bank is launching a cash tender offer for any and all structured covered bonds outstanding under a $500m programme, which it sold a $200m (Eu155m) five year issue off in September 2012.

According to Global Bank, it will buy from Deutsche any of the 4.75% May 2017 notes purchased during the offer, paid for by the issuance of senior unsecured notes in an international capital markets offering.

The tender runs until 26 October, but bonds tendered by an early tender date of 12 October will qualify for a $1,033.75 payment per $1,000, while those tendered afterwards will receive $50 less, so $983.75.

The $200m deal in 2012 was the first internationally-targeted covered bond from Latin America. Unlike some other Latin American countries that have forms of covered bond legislation, Panama did not and Global Bank issued a structured covered bond.

It was sold, at a second attempt, at a yield of 5%, equivalent to 438.5bp over US Treasuries. Deutsche was arranger of the programme and a joint lead manager of the transaction, while HSBC was co-arranger and joint lead.

Deutsche, Citigroup and JP Morgan are dealer managers for the tender offer.