For next year, the government “is considering” an issue of US$1 billion in bonds on the international markets, reported J.P. Morgan investment bank analyst Franco Uccelli, in his latest trip notes, from 27 August. However, this new placement will have the particularity that the Dominican Republic will make its “world debut” for having issued bonds in its own currency, the Dominican peso, on these markets.
According to Uccelli, the government expects “at least half” of the total issue to be made in pesos, but it will be done under the laws of New York, and will be free of tax obligations. The world debut of bonds in pesos will be “Euroclear-able” and all the flows associated with currency will be denominated in dollars, Uccelli reveals.
The Euroclear-able bonds are those that can be transferred and liquidated through Euro Clear, a company of financial services headquartered in Brussels that specializes in the liquidation of securities, transactions, as well as the custody and maintenance of these securities. The government hopes to attract foreign investors to purchase the new bonds.