Dominican Republic Said to Sell Benchmark Dollar Bonds TomorrowVeronica Navarro Espinosa
The Dominican Republic plans to sell dollar bonds due in 10 years as soon as tomorrow, according to a person familiar with the offering.
Citigroup Inc. and Deutsche Bank AG are arranging the benchmark transaction, said the person who asked not to be identified because final terms aren’t set. Benchmark sales are typically at least $500 million.
The Caribbean nation is joining countries from Mexico to Indonesia to sell debt abroad this week and take advantage of a drop in borrowing costs. The extra yield investors demand to own Dominican bonds fell three basis points, or 0.03 percentage point, to 394 points at 11 a.m. in New York, according to JPMorgan Chase & Co’s EMBIG indexes.
The Dominican Republic hasn’t tapped the international debt markets since 2011, when it raised $750 million. The yield on the country’s securities due in 2021 have dropped 1.54 percentage points in the last year to 5.47 percent, according to data compiled by Bloomberg.
Proceeds from the bond sale will be used to finance infrastructure projects and for other purposes, according to the person.