The pricing for the Dominican sovereign bonds placed yesterday has a spread of 493 points compared to the 10-year US treasury, making its interest rate a 9.04 percent. The interest rate for these bonds are 46 points lower then the last sovereign bonds placed in 2001 for US$500 million. The interest payments will be every six months, and will be for US$27 million dollars. The US$600 million in bonds was placed with ease since there were orders for more than US$1.2 billion according to news reports. According to JPMorgan 70% of the orders came from Americans and 30 percent from Europe. JP Morgan Chase and Salomon Smith Barney (Citigroup investment banking arm) are the co-leaders in this transaction. The funds will be placed in an account held by BanReservas with American Express.
