JAN
2021
With this transaction, the Government takes advantage of the favorable conditions of international markets and ensures an important part of the external financing budgeted for 2021.
The Dominican Government, via the Ministry of Finance, issued sovereign bonds for US$2,500 million in the international market, in accordance with the provisions of the General State Budget for 2021, approved by the National Congress.
This transaction was structured in two tranches, the first, a reopening of an existing bond due in 2030 for an amount of US$1,000 million, at a yield of 3.87%, representing a reduction in the cost for the country, to this term, of 0.63%.
The second tranche is a new US$1.5 billion bond maturing in 2041, at a yield of 5.3%, this being the first Latin American sovereign and emerging markets issuance with a 20-year maturity.
This issuance, headed by the Minister of Finance and the Vice Minister of Public Credit, Jochi Vicente and María José Martínez, respectively, had an historic demand of US$10 billion, that is, 4 times the amount that was required.
Through this transaction, which was aided by Citibank and JP Morgan, the average cost of the debt of the Non-Financial Public Sector (NFPS) was reduced by 9 basis points, and the average life was extended from 12.0 to 12.2 years.
“The demand we have had is a clear sign of the trust and credibility that investors have in our country and the Government, due to the responsible management of public finances by the present administration”, emphasized the minister.
"We took advantage of the favorable financial conditions that were observed this week to secure an important part of the external financing stipulated in the General State Budget, in order to cover the needs of this year, in foreign currency," explained the Vice Minister of Public Credit.
