The Dominican Government, through the Ministry of Finance, issued US $ 2.5 billion in sovereign bonds in the international market, in accordance with the General State Budget for 2021, approved by the National Congress .
This transaction was structured in two tranches, the first, a reopening of an existing bond for a sum of US $ 1 billion with due in 2030, to a yield of 3.87%, representing a reduction in the cost for the country, in this term, of 0.63%.
The second tranche is a new US $ 1.5 billion bond maturing in 2041, At a yield of 5.3%, being this the first sovereign issue of Latin America and emerging markets with a maturity of 20 years, details a statement from the Treasury.
This issue, led by the Minister of Finance and the Deputy Minister of Public Credit, Jochi Vicente and María José Martínez, had a historic demand for US $ 10 billion, ie 4 times the amount required.
through this operation, which had the advice of Citibank and JP Morgan, reduced the average cost of debt of the Non-Financial Public Sector 9 basis points, And the half-life ranged from 12.0 to 12.2 years.
“The demand we have had is a clear sign of the trust and credibility that investors have in our country and the Government, for the responsible management of state finances by the present administration,” the minister stressed. ¨
The Deputy Minister of Public Credit explained that they took advantage of the favorable financial conditions that were presented this week to ensure a significant part of the external financing stipulated in the General State Budget, in order to cover the needs of the this year, in foreign currency.