Economy January 24, 2020 | 7:49 am

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Dominican Republic US$2.5B bond sets a milestone

Santo Domingo.- The Dominican Republic on Thursday placed a US$2.5 billion bond, with maturities of 10 and 40 years, at rates of 4.50% and 5.875% , and amounts of US$1.0 billion and US$1.5 billion, respectively.

“The placement is part of this year’s Financing Plan, approved and duly recorded in Law 506-19 that approves the General State Budget for 2020, as well as in the Public Debt Securities Act, the Finance Ministry said.

The funds received will allow compliance with this year’s investment plan and meet the Government’s obligations.

The 10-year issue for US$1.0 billion with an interest rate of 4.50% is, “the lowest issued by the Dominican Republic for this period.”

It adds that it’s the first time it issues a 40-year bond, “the instrument with the highest term issued by the country.

The interest rate or coupon of 5.875%, the lowest issued for a bond with maturity greater than or equal to 30 years, “constitutes a historical milestone in the trajectory of the Republic in international capital markets,” the Finance Ministry said in its statement.

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