Banreservas Opens Market for DR Banks

Banco de Reservas de la Republica Dominicana (Banreservas) has opened the cross-border bond markets for Dominican banks, pricing a $300m 2023 Tier 2 subordinated transaction. The government-owned first-time issuer priced at 99.129 with a 7.000% coupon to yield 7.125%, the tight end of 7.125%-7.250% guidance. The book was heard reaching $750m by Friday morning, according to investors following the sale. Banreservas plans to use proceeds to improve its maturity profile, with a portion of the funds going towards regulatory capital purposes. Citi managed the sale, rated B2/B minus, below the bank’s B1/B default ratings. The Dominican sovereign is heard looking to follow into the international market, with Citi heard as one of the mandated banks. An issue would be the government’s first since a $250m retap of its 2021 bonds in November 2011.