Santo Domingo. – The Dominican Government said that through the Ministry of Finance, it carried out a bond liability management operation in US dollars with which a reduction in debt service of US$ 1,100 million was achieved in the period 2022-2024.
At the same time, a sovereign bond issue was made for US$3,564 million in the international market, of which US$1,264 million were allocated to the liability management operation.
The rest, US$2.3 billion, will be used to cover part of the external financing provided for in the 2022 General State Budget.
Of the US$ 1,100 million decrease in debt service for the next three years achieved with the liability management operation, US$ 190.3 million correspond to the year 2022.
Likewise, this operation reduces the cost of debt by 3 basis points and increases the average maturity of the bonds in dollars by 0.3 years.
In a press release, the Ministry of Finance reported that this liability management operation was extremely successful.
The operation was structured in two tranches of new bonds, the first maturing in 2029 and a coupon of 5.5% and the second maturing in 2033, at a coupon of 6.0%. Both tranches were for an amount of US$1,782 million each, for a total of US$3,564 million.
The issue had a demand of US$ 8,500 million, that is, 2.4 times the amount finally awarded.
The purchase offers came from investors from different countries and regions of the world, including the United States, Europe, Latin America, as well as local investors.
“The high demand received in this transaction demonstrates the confidence of investors and the robustness of our economy, even in times of uncertainty in international markets,” said Finance Minister Jochi Vicente.
