DomRep Builds $3bn Book

The Dominican Republic retapped its 7.50% 2021s for another $500m Thursday after the infrequent issuer saw its order book climb to $3bn in what was a positive day for the broader markets. Investors certainly liked what was seen as a 27bp concession after the release of low 7% area guidance, and they largely stayed on board even after the sovereign reduced that to a skinny 7bp when it launched at 6.95%. The B1/B +/B credit was heard favoring a tap of the 21s over the 27s simply because investor appetite was stronger at that part of the curve. “The deal was extremely strong,” notes Gregory Fischer, managing director at Oppenheimer. He says leads Barclays and JPMorgan picked the right day to bring DomRep given how optimism over US debt talks and news of a Greek bail-out plan sent markets higher Thursday. The 21s were trading at 104.60-105.10 in the secondary Thursday afternoon against a reopening price of 103.545. The sovereign was last in the market in May last year when it first issued the 2021s through Barclays and Citi, pricing them at par to yield 7.50%.