The Ministry of Hacienda (Treasury) announced it has placed a bond for US$1 billion at 4.0% and maturity of 10 years, and another for US$1.5 billion at 5.875% and maturity of 40 years. The Ministry says that the placement was authorized in the National Budget (Law 506-19) for 2020 and the Public Debt Securities Law.
Diario Libre points out that the US$2.5 billion placement adds up to 83.7% of the debt-taking approved in the general state budget for the year. The foreign debt is now at US$38.5 billion, or 43% of the GDP. As of 31 December 2019, the Non-Financial Public Sector debt was at US$35.94 billion.
The Ministry says the funds will allow compliance with the state’s investment plan and to meet government obligations.
The Ministry says that the 10-year issue for US$1 billion with an interest rate of 4.50% is a milestone as it is the lowest interest rate obtained for a Dominican bond placement. More so, he says this is the first time a Dominican bond is issued for 40 years.
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Diario Libre
Diario Libre
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Listin Diario
27 January 2020