Dominican Sovereign Bond Issuance in International Capital Markets US$3,800 million.

On September 17th, 2020 the Ministry of Finance of the Dominican Republic placed a total amount of US$3,800.0 million in the international capital markets.

In the transaction de Republic placed USD denominated bonds for a total of US$3,500.0 million and bonds in Dominican Pesos for RD$17,500.0 million (US$300.0 million). Of the total amount in US dollars US$1,800.0 million consisted in a new bond with maturity in 2032, and US$1,700.0 million in the reopening of the DR-2060 bond issued on January 2020. The yields for the instruments were 4.875% and 6.25% respectively. The DOP bond was a reopening of the DR-2026(DOP) issued in 2019 and was issued at a yield rate of 10.0%.

This issuance is part of the Annual Financing Plan contemplated in the Law No.222-20 that modifies the 2020 National Budget for 2020. The resources received from these placements will allow the Government to cover the additional financing needs in different sectors due to the pandemic, the extension of the social programs and to support the country´s economic reactivation.

As in previous years the Republic received the support of the international investor community, showing their positive valuation of the Government plan and measures announced by the authorities, in terms of economic rebound, exchange stability, the return to public finances consolidation and debt management.

Total demand received was US$9,600.0 million dollars, more than 2.5 the amount offered, with orders of demands that came from investors from different countries and regions, including Unites States, Europe, Latin America and local investors.

The conditions obtained in these transactions will maintain the average time to maturity in 12 years, as well as the average interest rate levels of the portfolio.

The Dominican team that conducted the transaction was led by the Minister of Finance, José Manuel Vicente, with the support of the technical staff of the Public Debt Office and the Dominican Republic´s Central Bank. Citigroup Global Markets and J. P. Morgan Securities acted as joint manager bookrunners.