As the local and international capital markets reeled in mid-September, the Dominican Republic successfully resurrected and placed a five-year global bond whose syndication had been suspended on September 11. The country's ability to raise $500 million only nine days after the terrorist attacks in the United States is testament to investors' fondness for the Dominican Republic's strong credit story and their eagerness to diversify into a relatively rare and higher-yielding sovereign issue.
A Dominican Rebound
Despite intense market volatility in September, the Caribbean country was able to raise $500 million with a debut global bond. The issue is an effort to develop the Dominican Republic's yield curve.
The government's main aim was to pique investor interest in the country as a whole. "We considered it crucial for the Dominican Republic to start participating in the international capital markets, not only as a way to provide funds for the government, but also to open the international capital market to the private sector," says Andrés Dauhajre, managing director of external financing for the Dominican Republic.
As Argentina and...
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