Cancellation of USD1.260 b in public debt as a result of a liability management operation.

DOMINICAN REPUBLIC - In Brief 09 Dec 2020 by Magdalena Lizardo
The Dominican Government achieved yesterday the cancellation of USD1.26 b of public debt through a liability management operation. The operation consisted of the repurchase of the securities maturing in 2021, 2024 and 2025 and their replacement by the bond maturing in 2032. The latter has a longer term and a lower interest rate. With the operation, the debt service for the 2021-2025 period was reduced by USD1.132 b, the interest service changed from 6.16% to 6.06% and the average maturity of the global bonds portfolio in dollars went from 17.19 to 17.79 years. By 2021, payment obligations will be reduced by USD426 m, which, according to the Ministry of Finance, opens the space to finance projects with a high social impact. Last week Standard & Poor's (S & P Global) ratified the sovereign risk rating of the Dominican Republic at BB- / B, with which the country maintains the existing rating prior to the COVID-19 pandemic, as was also previously ratified by Moody's and Fitch.

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