The Dominican Republic has sold a five-year, US$500 million bond yielding 9.5%, as news headlines report today. The funds will be available in the Central Bank starting 27 September. 79% of the bonds were placed in the US, 20% in Europe and 1% in Latin America. Minister of Industry and Commerce, Hugo Guiliani Cury, said this is the first placement of bonds from an emerging country since the 11 September crisis. Thus the Dominican Republic successfully concludes the process that incurred the cost of getting an international credit rating, hiring lawyers and investment bankers and putting on a road show. Hoy reports that under the terms of the agreement, the country will pay US$21.2 million in interest every six months, starting 27 May 2002 through 27 September 2006.
