Dominican Central Bank says US$561.3M from bond a done deal

Santo Domingo.- Dominican Republic’s Central Bank on Fridayannounced having received a US Federal Reserve Swift notice on Thursday, of a US$561.3million deposit to the Dominican Treasury account, resulting from the placementof the sovereign bond issued June 29.

“This amount exceeded the nominal amount of the issue by US$61.3million, considering that the placement was made mainly premium, which meansthat it was awarded at a price above their face value,” the Central Bank saidin a statement.

“It should be stressed that this placement received demandabove the amount offered and placed at less than the previous placement rate,which represents a very important achievement that reflects the solidfundamentals of the Dominican economy and the international markets’ investorconfidence on Dominican Republic bonds.”

It said with the deposit of US$561.3 million the Dominican Treasury’sinternational reserves top US$5.8 billion gross and US$5.8 million net as ofJuly 7, 2016.

Dollar exchange

The Central Bank also stressed the injection of over US$150million in the foreign exchange market from Friday July 1st to Thursday the 7th,through the national financial system, “with the Central Bank’s own dollars inits international reserves.”

“The resources received from the Sovereign Bonds yesterdayare available to honor the Dominican Government’s commitments dollars, bothinternal and external payments, which together with the interventions that thisCentral have been doing Bank, continues to improve the supply of currency inthe Dominican economy.”