Yesterday, the Chamber of Deputies passed an urgent bill to raise US$300 million based on the reopening of bonds issued in 2005 and which will mature in 2018, or through the emission of a new loan acceptable by the international capitals market. According to Diario Libre, the bonds are meant to finalize payment of US$699.8 million that the state owes to the Dominican Electricity Distribution Company (DIDOEL), a subsidiary of Union FENOSA.
According to Listin Diario, PLD Senator Pelegrin Castillo doesn’t agree with the bill, and says the state should never have reached an agreement with Union FENOSA. Castillo has stated that the operation was “scandalous, obscure, and censurable” in many aspects and it should be clarified with Union FENOSA. The new emission of bonds was approved with a 110 to 5 vote in favor and now goes to the Senate for passing and later to be signed into law by the Executive Branch.
El Caribe reports that the new bonds will be placed in similar or better conditions than those that mature in 2018. The bill had been presented to Congress on 13 September 2005 by the Executive Branch.
According to Clave Digital, the estimated rate for the new bonds will be near 8%. The contract between the state and Union FENOSA transferred the entire stock portfolio of the EdeNorte and EdeSur electrical distribution companies to the state.