Reduction of public debt service in USD1,310 m for the period 2022-2027

DOMINICAN REPUBLIC - In Brief 09 Jun 2021 by Magdalena Lizardo
The Ministry of Finance announced the reduction of the public debt service by DOP74,908 m (USD1,310 m) for the period 2022-2027, through a liability management operation in the local market. The operation consisted of swapping bonds with a face value of DOP92,427 m (USD1,617.44 m) and interest rates of up to 16.96% for two new 7 and 10-year bond issues in local currency with yields of 8% and 8.6 %, respectively. The bonds exchanged correspond to eleven bond issued by the Ministry of Finance in local currency. With the operation, it was possible to reduce the financing cost of the local bond portfolio in pesos by 66.2 basis points, as well as increase its average maturity from 7.83 to 8.92 years. International investors participated in the operation, accessing the local market through global deposit notes, with a participation of more than DOP15,000 (USD262.5 m) in repurchase offers. The Minister of Finance, Jochi Vicente, reported that as part of the country's debt strategy the institution will gradually structure the debt maturity profile taking into account the cash management forecasts in order to greater budgetary space.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.