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Dominican Republic executes US$1.6 billion bond issuance and debt repurchase
The Dominican Republic has completed a liability management operation to restructure its public debt. The Ministry of Finance and Economy (MHE) simultaneously repurchased US$1,385.2 million in sovereign bonds, which carried a 5.95% coupon and were set to mature in January 2027, and issued a new US$1,600 million global bond with a 6.85% interest rate maturing in March 2039.
The operation aims to reduce refinancing needs scheduled for early 2027 by extending the maturity profile of the debt into the long term. The new bond issuance saw strong international investor interest, receiving orders totaling approximately US$6,542.4 million, which is 4.1 times the amount placed. For the repurchase, offers represented about 81.5% of the outstanding amount.
Despite a volatile international environment with high interest rates, the Dominican Republic achieved a spread of 181 basis points against US Treasury bonds for the new issuance. This is a significant reduction from the 349 basis point spread recorded when the original 2017 bonds were issued, reflecting improved financing conditions and investor confidence in the country's economic fundamentals.
Entities
Dominican Republic · General Directorate of Public Credit · Ministry of Finance and Economy · United States Treasury
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The government repurchased US$1,385.2 million in sovereign bonds with a 5.95% coupon maturing in January 2027. elpregonerord.com · www.diariolibre.com · eldia.com.do
- [● 3 SOURCES] The government issued a new US$1,600 million global bond with a 6.85% rate maturing in March 2039. elpregonerord.com · www.diariolibre.com · eldia.com.do
- [● 3 SOURCES] The Dominican Republic completed a simultaneous liability management operation involving a bond repurchase and a new issuance. elpregonerord.com · www.diariolibre.com · eldia.com.do
- [● 3 SOURCES] The new issuance received orders for approximately US$6,542.4 million, which is 4.1 times the amount placed. elpregonerord.com · www.diariolibre.com · eldia.com.do
- [● 3 SOURCES] Repurchase offers represented approximately 81.5% of the outstanding amount of the instrument. elpregonerord.com · www.diariolibre.com · eldia.com.do
- [● 3 SOURCES] The operation aims to reduce refinancing needs scheduled for early next year and extend debt maturity to the long term. elpregonerord.com · www.diariolibre.com · eldia.com.do