“Pellerano Nadal represented JP Morgan Securities LLC and Citigroup Global Markets Inc. with the issuance of Sovereign Bonds and with the first Local Liability Management by the Dominican Republic.”

The PELLERANO NADAL team included Managing Partner Luis Rafael Pellerano, Senior Counsel Urania Paulino, and Associate Eduardo Pellerano.

June 11, 2021.

PELLERANO NADAL represented JP Morgan Securities LLC and Citigroup Global Markets Inc., in the issuance of Sovereign Bonds, their placement in the format of global deposit notes to foreign investors and the first liability management carried out in the local market for a total of RD$116,756,300,000.00 (approx. US$2,023,506,100.00), RD$6,831,700,000.00 (approx. US$118,400,350.00) and RD$92,427,000,000.00 (approx. US$ 1,601,854,420.00), respectively, by the Dominican Republic.

The firm assisted JP Morgan Securities LLC and Citigroup Global Markets Inc., as structuring agents, with the local issuances by the Dominican Republic of RD$35,314,500,000.00 (approx. US$612,036,400.00) and RD$81,441,800,000.00 (approx. US $1,411,469,700.00) with yields of 8.0% and 8.6% and due on 2028 and 2031, respectively. These issuances were accompanied by an offer to purchase to international investors, under the format of global deposit notes, for RD$ 2,482,000,000.00 (approx. US$8,353,560.00) and RD$4,349,700,000.00 (approx. US$6,060,700.00), due on 2028 and 2031, respectively. Citibank N.A. acted as depositary for the global depository notes.

Simultaneously, the firm assisted JP Morgan Securities LLC and Citigroup Global Markets Inc., as agents, in the liability management of local debt, including global deposit notes, for RD$92,427,000,000.00 (approx. US$1,601,854,500.00).

This transaction in the local market will allow a reduction in debt services of approximately RD$74,908,000,000.00 (approx. US$1,298,232,250.00) for the period 2022-2027, reduces the cost of financing by 66.2 basic points and increases the average maturity of 7.83 to 8.92 years in the local bond portfolio in Dominican pesos.

The transaction marked the first time the Dominican Republic issued Dominican law-governed bonds on the international debt markets pursuant to Rule 144A/Reg S. The transaction was also the first time the Republic conducted an offer to purchase targeting bonds and Global Depositary Notes held by foreign investors.

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