The Dominican Government was recognized with the “Sovereign Liability Management Operation of the Year” in the annual awards granted by the financial magazine LatinFinance, corresponding to the year 2021, in an event held in New York City, United States.
The recognized transaction was the first liability management operation with bonds denominated in pesos, carried out by the Treasurythrough the General Directorate of Public Credit.
This transaction consisted of the repurchase of RD$92,427 million of 11 bonds maturing between 2022-2025, which were replaced by papers maturing in 2027 and 2031 with better financial conditions. As a result, the debt service was reduced in the repurchase period by RD$74,908 million and the cost of debt decreased by 66 basis points of the bond portfolio in Dominican pesos.
“We will continue to carry out cutting-edge operations within our debt management strategy that deepen the local capital market,” said María José Martínez, Deputy Minister of Public Credit, upon receiving the recognition.
This is an award for the stock market of the Dominican Republic that demonstrated its development and depth in this transaction. With this operation, the largest auction in Dominican bonds was achieved, with a demand of RD$116,894 million.
The Minister of Finance, jochi vincent, greeted the recognition granted by LatinFinance and highlighted that the operation is part of the strategy of giving sustainability to the public debt.
“This operation allowed the reduction of refinancing risk in the short and medium term”, highlighted Vicente.
In this award, LatinFinance recognized the transactions and institutions that stood out during a period in which the peak of the COVID-19 pandemic and its subsequent control were recorded, thanks to worldwide vaccination efforts, and the subsequent arrival of contagious variants of the coronavirus that disrupted and further delayed the return to normalcy.
The Dominican Republic was recognized along with other sovereigns of the region, such as Chile, Mexico, Argentina, Peru and Panama.
