Government issues sovereign bonds for US $ 2,500 million

The Dominican Government, through 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 for an amount of US $ 1,000 million with maturity in 2030, at a yield of 3.87%, representing a reduction in the cost for the country, in 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 sovereign issuance in Latin America and emerging markets with a maturity of 20 years, details a statement from the Treasury.

This issue, directed by the Minister of Finance and the Vice Minister of Public Credit, Jochi Vicente and María José Martínez, had a historic demand for US $ 10 billion, that is, 4 times the amount that was required.

Through This operation, which was advised by Citibank and JP Morgan, reduced the average cost of the debt of the Non-Financial Public Sector by 9 basis points, and the average life spanned from 12.0 to 12.2 years.

“The demand we have had is a clear sign of the trust and credibility that investors in our country and the Government have, due to the responsible management of State finances by the current administration,” the minister emphasized. ¨

The Deputy Minister of Public Credit explained that they took advantage of the favorable financial conditions that were presented this week to ensure 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.


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