Dominican Rep to issue USD 1.5 bn in Sovereign Bonds and USD 776 millions in domestic bonds
DOMINICAN REPUBLIC - In Brief 11 Mar 2014 by Pavel Isa
The government sent to Congress a bill which, once approved, will give permission to the Ministry of Finance to issue Sovereign Bonds for up to USD 1.5 bn to be allocated in the international financial market. It also sent a second bill which would give permission to issue domestic bonds for up to DOP 33.6 bn (equivalent to USD 776 millions). The sum of both is equivalent to the total amount of bonds to be issued in the year, as approved in the budget for 2014. The rest of the financing for the fiscal year is from bilateral or multilateral sources. It is clear that with this early move in the year, the government is looking to take advantage of the still prevailing low interest rates in the markets, and to strengthen international reserves in order to be able to defend the exchange rate in the upcoming months. In the case of the Sovereign Bonds, the government is requesting to issue them in USD as well as in DOP. It would be the first time that a bond aimed at international markets is denominated in DOP. The bill says that bond maturity will be for 10 years or more.
Now read on...
Register to sample a report