The Dominican Republic plots cross-border bond issue
The Caribbean sovereign could get a jump on its 2018 pre-funding needs as demand for its bonds grow, sources say
The Dominican Republic is expected to return to
the cross-border bond market again this year and get a jump on
its 2018 funding needs, according to fixed income investors who
are keen to see more from the Caribbean island.
The sovereign's debt is in high demand due to the
Dominican Republic's projected high levels of economic growth
and its lowering current account deficit, investors told
Rated B1/BB-/BB-, the Dominican Republic's credit
ratings do not seemingly reflect its quality as an issuer, a
bond buyer said, giving investors a higher chance of snatching
up more yield on new issue day.
The Dominican Republic came to the cross-border
market in January with a 5.95%
$1.2bn 2027 bond led by JPMorgan, while local bank
BanReservas joined as co-manager.