The Cap Cana tourist project has successfully placed a US$250 million bond issue on the international bond market. The bonds are seven-year, 9.62% paper. This is the first time that a Dominican entity has been able to place bonds at an interest rate below 10%. The money will be used to pay off the US$62.3 million in local commercial loans, with the rest going into the development of the 12,000-hectare beach, golf and marina resort development that includes eight kilometers of pristine shoreline and three Jack Nicklaus Signature golf courses, the first of which was inaugurated on Wednesday, 8 November. The company has sold over US$500 million in real estate (600 units).
\n According to Abrisa Group head Abraham Hazoury, the bonds have received a “B” rating from Fitch Ratings and a B-3 rating from Moody’s. According to Ricardo Hazoury, who heads the Cap Cana operations for the Abrisa Group, Bear Stearns handled the financing operation, which entailed “an innovative financial structuring with a level of complexity and sophistication never seen before on the international markets.” The bonds were such hot items that there was excess demand for them, which allowed the interest to be set below 10%.
\n A company statement indicates that development began in 2002 and to date the company has invested approximately US$220 million in infrastructure and other improvements, including 17 miles (27 kms) of paved roads, water reservoirs and treatment facilities, power generation capacity (five megawatts), a private beach club, the first Jack Nicklaus Signature Golf course, and substantial completion of the marina and numerous residential units. The first condos were delivered in October 2006.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Cap Cana tourist project has successfully placed a US$250 million bond issue on the international bond market. The bonds are seven-year, 9.62% paper. This is the first time that a Dominican entity has been able to place bonds at an interest rate below 10%. The money will be used to pay off the US$62.3 … <\/p>\n