Dominican Republic Confirms Expiration of Offer for Existing Notes Purchase Process
On February 18, 2025, the Dominican Republic officially announced the expiration of its offer to purchase existing notes, originally published in a document dated February 10, 2025. This offer included provisions for both outstanding global notes and local notes, aimed at repurchasing a significant portion of these securities held in the market.
The offer to purchase was designed to provide current noteholders with cash in exchange for their holdings, including both US dollar-denominated notes and those governed by Dominican law. The expiration followed an established timeline, ending at 5:00 PM New York City time on February 14, 2025. The aggregate principal amount of notes validly tendered during this period reflects a substantial interest from investors in the republic's bonds.
As per the details shared, two tables summarize the aggregate principal amounts of the existing global and local notes that were validly tendered:
Table 1: Existing Global Notes Details
- Aggregate Principal Amount Tendered: US$1,514,507,000
- Percentage of Aggregate Principal Amount Tendered: 84.75%
- Purchase Price: US$1,020.00
- Aggregate Principal Amount Tendered: DOP18,787,750,000
- Percentage of Aggregate Principal Amount Tendered: 68.99%
- Purchase Price: DOP1,006.25
Table 2: Existing Local Notes Details
- Aggregate Principal Amount Tendered: US$565,120,000
- Percentage of Aggregate Principal Amount Tendered: 94.19%
- Purchase Price: US$1,070.00
The tendered notes are expected to undergo settlement on February 24, 2025, contingent upon the tender conditions being fulfilled. Significant is the stipulated exchange rate for converting the purchase price and accrued interest from domestic currency to US dollars, set at DOP62.1282 per US dollar. Noteholders who have tendered their notes as part of this offer will not only receive the agreed purchase price but also the accrued interest on their holdings.
The Dominican Republic's strategy to manage its existing debt through this offer reflects ongoing efforts to optimize its financial commitments and leverage available liquidity in the market. Additionally, the republic noted that the acceptance of tenders could be subject to proration due to a potential oversubscription, enabling it to manage the overall cost of this repurchase initiative while maintaining fiscal responsibility.
This offer also paves the way for future securities issuances, as the government intends to use proceeds from a subsequent debt offering to facilitate the purchase of existing notes, thereby reinforcing its financial position in the capital markets.
For more information on the offer and its implications, interested parties can refer to the detailed offer documents provided on the designated platforms or reach out to the designated dealer managers for tailored insights and clarifications.
Overview of the Repurchase Offer
The offer to purchase was designed to provide current noteholders with cash in exchange for their holdings, including both US dollar-denominated notes and those governed by Dominican law. The expiration followed an established timeline, ending at 5:00 PM New York City time on February 14, 2025. The aggregate principal amount of notes validly tendered during this period reflects a substantial interest from investors in the republic's bonds.
Details on Validly Tendered Notes
As per the details shared, two tables summarize the aggregate principal amounts of the existing global and local notes that were validly tendered:
Table 1: Existing Global Notes Details
- - Title of Notes: 6.875% Notes due 2026
- Aggregate Principal Amount Tendered: US$1,514,507,000
- Percentage of Aggregate Principal Amount Tendered: 84.75%
- Purchase Price: US$1,020.00
- - Title of Notes: 9.750% Notes due 2026
- Aggregate Principal Amount Tendered: DOP18,787,750,000
- Percentage of Aggregate Principal Amount Tendered: 68.99%
- Purchase Price: DOP1,006.25
Table 2: Existing Local Notes Details
- - Title of Notes: 6.650% US$-Denominated Notes due December 2026
- Aggregate Principal Amount Tendered: US$565,120,000
- Percentage of Aggregate Principal Amount Tendered: 94.19%
- Purchase Price: US$1,070.00
Settlement of Transactions
The tendered notes are expected to undergo settlement on February 24, 2025, contingent upon the tender conditions being fulfilled. Significant is the stipulated exchange rate for converting the purchase price and accrued interest from domestic currency to US dollars, set at DOP62.1282 per US dollar. Noteholders who have tendered their notes as part of this offer will not only receive the agreed purchase price but also the accrued interest on their holdings.
Future Implications
The Dominican Republic's strategy to manage its existing debt through this offer reflects ongoing efforts to optimize its financial commitments and leverage available liquidity in the market. Additionally, the republic noted that the acceptance of tenders could be subject to proration due to a potential oversubscription, enabling it to manage the overall cost of this repurchase initiative while maintaining fiscal responsibility.
This offer also paves the way for future securities issuances, as the government intends to use proceeds from a subsequent debt offering to facilitate the purchase of existing notes, thereby reinforcing its financial position in the capital markets.
For more information on the offer and its implications, interested parties can refer to the detailed offer documents provided on the designated platforms or reach out to the designated dealer managers for tailored insights and clarifications.
Topics Financial Services & Investing）
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