January 15, 2016
The Dominican Republic broke ground last year, using the proceeds from a dual-tranche bond issue to strike a deal with Venezuela’s PDVSA that helped reduce the country’s debt.
B1/B+/B+ rated Dominican Republic sold $2.5 billion of debt across two tranches in January. The issues included a $1 billion 10-year bond and a $1.5 billion 30-year tranche. The sovereign sold the 10-year and 30-year instruments at a yield of 5.5% and 6.85%, respectively, trimming the yield on both by 15bp from initial indications.
The prices for the notes were “fairly attractive” and offered just a slight concession to the curve, an investor said at the time of issue.
Bank of America-Merrill Lynch and JPMorgan, winne
The Caribbean sovereign stands out for a savvy transaction that significantly improved its debt profile