Dominican Republic places ´junk´ bond of US$1.0B

Santo Domingo.- Thegovernment of the Dominican Republic on Friday placed a ´junk-rated´ sovereignbond of US$1.0 billion in the capitals market, funds that will partly finance thisyear´s budget.

The Finance Ministry said“despite the global volatile, the government issued the 10-year sovereign at a rateof 6.875%. "Despite the volatility that has characterized the internationalfinancial markets since the beginning of the year, the placement was successfuland the total demand for the Dominican Sovereign Bond was well above the amountoffered by the country."

"To achieve theseresults, investors valued the excellent economic performance that the countryhas had in the last 12 months, with the economy in Latin America of greatereconomic growth, with one of the lowest inflation rates; and a process offiscal consolidation that led fiscal accounts to have a primary surplus at theend of last year," Finance said in a press release.

It adds that investorshave also taken into account the great positive impact it has had on thecountry reducing oil prices in the international market.

“A taste for junk-ratedissue”

“Order books on theDominican Republic’s 10-year bond swelled to US$2.8bn on Friday as theCaribbean nation tested appetite for Latin America’s first junk-rated issue ofthe year,” Reuters reports from new York.