The Dominican governmentthrough the Treasurycarried out a bond liability management operation in US dollars with which he says he achieved a reduction in the service of the debt of US$ 1,100 million for the period 2022-2024.
In a press release they state that, 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 and the rest, US$2,300 million, will be to cover part of the external financing foreseen in the General State Budget 2022.
They detail that, of the US$1,100 million decrease in the service of the debt for the next three years obtained with the liability management operation, US$190.3 million correspond to the year 2022. Similarly, this operation reduces the cost of debt by three basis points and increases the average maturity of dollar bonds by 0.3 years.
The Treasury reported that this liability management operation, in which bonds in US dollars maturing in 2023 and 2024 were offered, including the domestic bond CDEEE-2023, was extremely successful, receiving and accepting US$1,162.2 million in offers, which represents a 83.6% of the total circulation amount of the securities offered.
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 of the world, including the United States, Europe, Latin America and locals.
“The high demand received in this transaction demonstrates the confidence of investors and the robustness of our economy,” said the Minister of Finance, Jochi Vicente.
The Dominican team in charge of carrying out this transaction was led by the Minister of Finance, Jochi Vicente, the Deputy Minister María José Martínez and the technical team of Public Credit. The structuring banks were Citigroup Global Markets and JP Morgan.
