Dominican Republic issues inaugural green bond

DOMINICAN REPUBLIC - In Brief 26 Jun 2024 by Magdalena Lizardo
The Dominican Republic (DR) has successfully launched its inaugural green bond issuance, raising USD 750 million at an annual rate of 6.7%. This rate is 15 basis points lower than what would have been achieved through conventional non-thematic instruments. The proceeds from this issuance will fund initiatives aimed at environmental protection, social welfare, and climate change adaptation, as outlined in the country's newly established Green, Social, and Sustainable Bond Reference Framework, released just last week. In addition to the green bond issuance, the government conducted a repurchase operation of an external sovereign bond maturing in 2025, totaling USD 1.009 billion. To facilitate this repurchase and finance the 2024 Public Budget, the government issued a local currency-denominated external bond maturing in 2036, valued at RD$105 billion (approximately USD 1.8 billion), and reopened a bond maturing in 2031 for an additional USD 500 million. These operations have resulted in a decreased percentage of foreign currency financing within the NFPS debt portfolio and have extended the average maturity of the global bond portfolio.

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