The Dominican Government announces expiration of offer to purchase and issues USD 1.25 b bond.

DOMINICAN REPUBLIC - In Brief 12 Sep 2023 by Magdalena Lizardo
Last Sep 5, 2023, the Dominican Government opened the purchase offer for bonds USP3579ECD78/P3579E CD7 (Reg S) and US25714PEA21/25714P EA2 (144A). These bonds were originally issued for DOP 68,023,000,000 at an annual interest rate of 9.75% and are set to mature in June 2026. Today, the Government announces the expiration of the offer to purchase. The aggregate principal amount presented by the holders was DOP 40,792,050,000 (59.97% of the amount offered), equivalent to approximately USD 0.719 b based on an exchange rate of DOP 56.7011 per USD. The purchase price was DOP 1,020 for every DOP 1,000. Today, the Dominican Government also issued a new local currency bond equivalent to USD 1.25 b, with an interest rate of 11.25% and a maturity period of 12 years. Taking into account the financing need of DOP 333.1 b for 2023, as established in the Public Budget Amendment Law (Law 52-23), and considering the debt contracted as of September 1, 2023, which amounted to DOP 238.7 b, there is still a need to contract debt for DOP 94.3 billion, equivalent to USD 1.7 b. The USD 1.25 billion issued today will allow for the payment of bond purchases (USD 0.719 b) and provide USD 0.53 b to finance a portion of the USD 1.7 billion necessary to fund the 2023 Public Budget.

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