The Dominican Republic last Tuesday announced a cash offer to buy back four Government-backed bonds that ends today.
“The offer will commence on Tuesday, December 1, 2020 and will expire at 5:00 pm (New York City time) on Monday, December 7, 2020 (the ‘Expiration Time’) unless extended or earlier terminated by the Republic in its sole discretion. Existing Notes may be validly withdrawn at any time at or prior to the Expiration Time. The settlement of validly tendered and accepted Existing Notes is expected to occur on Monday, December 14, 2020, subject to change without notice (the ‘Settlement Date’),” a release from the
According to the release, the Government of the Dominican Republic has offered to repurchase the following:
For each block of US$1,000, the bondholder will receive along with the principal outstanding interest due on the tenure date.
With the exception of the 7.5 per cent amortising bond due in 2021, all other other instruments still hold their original principal value and coupon rate. In that regard, holders of the 7.5 per cent bond due 2021 will receive US$1,032 per block.
For bondholders with the 6.6 per cent bonds due in 2024, they will receive US$1,118.75 for each block; holders of 5.875 per cent amortising bonds due in 2024 can expect US$1,077.50; and the 5.5 per cent bonds due in 2025 carries a value of US$1,098.75.
Citigroup Global Markets Inc and JP Morgan Securities LLC are the dealer managers for the offer.