#Dominican Republic #Santo Domingo #Exchange Rate #Note Offer

The Dominican Republic Modifies Exchange Rate Terms

On February 12, 2025, the Dominican Republic disclosed important amendments regarding the applicable exchange rate in relation to its ongoing offer to repurchase existing notes for cash, as detailed in the offer document dated February 10, 2025. This announcement is vital for current bondholders as it will directly influence the purchase price and the accrued interest associated with the DOP-denominated global notes.

Key Changes to the Exchange Rate

The recent amendment specifies that the exchange rate utilized will be established based on the weighted average of buy and sell foreign exchange rates recorded on the corresponding Dominican business day prior to the expiration of the purchase offer. This calculation will be conducted by commercial banks and financial institutions operating in the Dominican Republic, and the information will be published and accessible via the website of the Central Bank of the Dominican Republic.

This alteration is particularly crucial as it highlights the mechanism used to convert the purchase amount from Dominican pesos to U.S. dollars. The clarity provided about the exchange rate will facilitate existing bondholders in making informed decisions ahead of the expiration of the offer.

Important Dates and Deadlines

The purchase offer officially commenced on February 10, 2025, and is set to conclude at 5:00 PM New York City time on February 14, 2025, unless the Republic decides to extend the offer or terminate it early at its discretion. Bondholders interested in tendering their existing notes can withdraw their participation at any point prior to the expiration time. The anticipated date for settling validly tendered notes is February 24, 2025, although this is subject to change.

The Republic has planned to announce critical details regarding the offer on February 18, 2025, which will include:
1. The total number of tenders received and the applicable exchange rate.
2. The maximum purchase price.
3. The total amount of accepted tenders.
4. Any pro-rata distribution of tenders.

This information will assist bondholders in understanding their standing in the offer process and will help them navigate the complexities of the exchange rate implications.

Accessing the Offer Document

For those interested in the finer details of the offer, the complete offer document is available for download from the Global Bondholder Services Corporation website. This document is essential reading for current note holders as it outlines the terms, conditions, and further details surrounding the offer.

Potential participants are encouraged to reach out to the designated Dealer Managers for any questions regarding the process. The contact information for Citigroup Global Markets and J.P. Morgan Securities, who are managing the tender, has been provided in the relevant documents and is vital for obtaining further clarification and assistance.

Conclusion

As the Dominican Republic adjusts its approach to note repurchases through this updated exchange rate amendment, bondholders must stay informed to protect their investments. The transparency about how the purchase price will be calculated and converted sets a clearer expectation and offers a pathway for bondholders to evaluate their options effectively. Keeping abreast of the impending announcements on February 18 will be crucial in navigating this financial landscape.