El Siglo reports that the Mejia administration is promoting the US$500 million sovereign bonds in Europe and the US based on economic performance figures from the Fernandez administration. The newspaper points out that the attractive growth rate of the country presented in the Preliminary Offering Memorandum contradicts the harsh criticism of the present administration with the performance of the economy from 1996-2000. The bonds have been entrusted to the JP Morgan and Morgan Stanley Wall Street firms. It says that the net proceeds will be used exclusively to finance the construction of high priority and productive infrastructure projects that enhance the competitiveness of the Dominican economy. It explains that a government commission will consider only projects having an internal rate of return higher than the yield to be paid on the bonds. The projects are not listed in the document. To read the document (which may be slow in opening), see http://www.dr1.com/business/prospectus.pdf Standard & Poors rates DR on occasion of sovereign bonds placement Standard & Poors risk rating agency issued a presale report on the Dominican Republic. The report is based on information as of Sept. 5, 2001, and was posted in conjunction with the placement of the planned US$500 million in bonds due September 2006. See the report at http://www.standardandpoors.com/RatingsActions/PresaleReports/Sovereigns/Articles/090601_dominican.html
