DomRep Returns for $250m

Dominican Republic emerged Tuesday with a $250m retap of its existing 7.50% 2021 bonds, after reopening the same bonds for $500m just 4 months ago. Books eventually grew to roughly $2bn on a deal that took the outstanding size of the 2021 bonds to $1.5bn. DomRep reopened the bonds at 103.952 to yield 6.875%, in line with 6.875%-7.000% price guidance and earlier 7.000% area whispers. “Just a few weeks ago the market was either closed or new issue premiums were high or investors were asking for volatility premiums,” says one investor. “This trade was well executed – announced and priced in a matter of hours and had good momentum.” Before the announcement, the bonds were being quoted at around 105.00 or 6.78% on a yield-to-maturity basis. In the grey the bond was trading up, around 104.75- 105.75. It was thought the deal came with a 10bp-12bp new issue concession or roughly 1 point discount from a price of 103.95 versus a Monday close of 105. “With the bonds as low as 98 in price within the last month and up to 105 in price Monday, it was a good call from leads to bring the issuer to market Tuesday,” says a banker away from the B1/B+/B deal. Bookrunners were Deutsche Bank and Citi. In July, the issuer retapped its 7.50% 2021s for $500m with Barclays and JPMorgan.