The Presidency announces that the Ministry of Hacienda has carried out a liability management transaction in the local market that will reduce the debt service of RD$74.9 billion for the period 2022-2027. The transaction also reduces the cost of financing by 66.2 basis points and increases the average maturity of the local peso bond portfolio from 7.83 to 8.92 years. The nominal value withdrawn was RD$92,427 million and comprises the repurchase of eleven local currency securities issued by the Ministry of Hacienda.
To carry out the transaction the Ministry of Hacienda had the participation of international investors that accessed the local market through global deposit notes (GDN), obtaining participation of more than RD$15 billion in repurchase offers. The country took advantage of the low-interest rates to secure better market conditions, reducing the refinancing risk and the cost of debt. The transactions had the counsel of JP Morgan and Citibank in the United States.
Minister of Hacienda Jochi Vicente explains that the liability management operation is part of the indebtedness strategy to give sustainability to the public debt, achieving important reductions in debt service in the short and medium-term to improve cash management forecasts and budgetary management.
Vice Minister of Public Credit, María José Martínez explained that the operation reduces the country’s refinancing risk and reflects a proactive management of the debt in line with the best international practices that allow the country to get closer to the goal of reaching investment grade.
Read more in Spanish:
Presidency
PR News Wire
11 June 2021