DomRep Government Authorizes Bond Issue

The Dominican Republic has authorized the finance ministry to issue up to DOP21bn ($583m) in bonds to stimulate local credit markets, the president’s office announced. The issue will be done in 6 tranches. A 2013 tranche of up to DOP4bn will have a 12% coupon, a 2015 tranche of up to DOP4bn will have a 14% coupon, and a 2017 tranche of up to DOP4bn will have a 16% coupon. Still pending are the coupons on 3 more tranches of up to DOP3bn maturing in the same years. Previously, the Dominican Republic had unveiled intentions of coming to international markets in Q1 2010, saying it wanted to borrow $500m-$600m. Bankers had expected a 10-year bond through Barclays and Citi.