Chicago, Sept. 22 – The Dominican Republic placed approximately $3.8 billion of bonds (BB-) in three parts: two dollar-denominated tranches and one reopening of a note denominated in local currency, according to an announcement.
The issue includes a new offering of $1.8 billion of notes with a 12-year tenor and a yield of 4 7/8%.
The sovereign added on to the 6¼% notes due in 2060, raising $1.7 billion in the add-on.
And, there was an add-on for Ps. 17.5 billion to the nation’s 10% notes maturing in 2026.
The issue was more than 2.5x oversubscribed.
This is the country’s largest bond issue to date.
“Never has the country received such a great demand for our titles. This is an unequivocal sign of the confidence that international markets are giving to our country and to the current government,” said Minister Jochi Vicente.
Proceeds will be used to cover the commitments of the administration for the end of 2020, including the social assistance programs Stay At Home, FASE and PA TI. Proceeds will also be used to finance government plans in the health sector to combat the pandemic.
Citibank and JPMorgan managed the transaction.
| Issuer: | Dominican Republic
|
| Issue: | Bonds
|
| Amount: | $3.8 billion
|
| Bookrunners: | Citibank and JPMorgan
|
| Announcement date: | Sept. 18
|
| Rating: | S&P: BB-
|
|
|
| New dollar notes
|
| Amount: | $1.8 billion
|
| Issue: | New notes
|
| Maturity: | 12 years
|
| Coupon: | 4 7/8%
|
|
|
| 2060 dollar add-on
|
| Amount: | $1.7 billion
|
| Issue: | Add-on offering
|
| Maturity: | 2060
|
| Coupon: | 6¼%
|
|
|
| Dominican peso add-on
|
| Amount: | Ps. 17.5 billion
|
| Issue: | Add-on offering
|
| Maturity: | 2026
|
| Coupon: | 10%
|
|
|
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