Minister of Hacienda Donald Guerrero said the bonds were placed at an interest rate of 5.10%, due 2027. The Ministry says this is the lowest rate the country has achieved for sovereign bonds. “This is an excellent indicator of the confidence of international markets in the country and its authorities, as well as a demonstration of great support to the construction of Punta Catalina,” said Guerrero in a press conference.
The Punta Catalina thermoelectric central would have been financed by the Brazilian BNDES export agency, but financing was suspended after the Odebrecht corruption scandal surfaced in Brazil and abroad. The Dominican government then resorted to borrowing from a European commercial bank, but funds again were suspended following the hearing of the Odebrecht bribes and overpricing scandal in the Dominican Republic.
Originally, the government had indicated the Punta Catalina coal-fired plants would be built by international investors. But as matters have turned out, the government has used its own revenues and sovereign bonds financing to advance the construction of the US$2 billion venture. Punta Catalina construction has been accused of irregularities in the tender and construction and of overpricing.
The Public Electricity Corporation (CDEEE) that has promoted the project says construction is 70% completed and the plant should go into operation in 2018.
Read more in Spanish:
https://presidencia.gob.do/noticias/gobierno-coloca-bonos-la-tasa-mas-baja-de-la-historia
