Dominican Republic’s $2.5 Billion Bond Offerings

Cleary Gottlieb represented the Dominican Republic, while Simpson Thacher represented the underwriters in the offerings.

The Dominican Republic executed two 144A/Reg. S offerings, including US$1.0 billion aggregate principal amount of 4.500% bonds due 2030 and US$1.5 billion aggregate principal amount of 5.300% bonds due 2041.

The initial purchasers were Citigroup Global Markets Inc. and J.P. Morgan Securities LLC. The transaction priced on January 13, 2021, and closed on January 21, 2021.

The offering marked the twentieth time the Dominican Republic has tapped the international debt markets.  Cleary has represented the sovereign in connection with each offering.  The bonds due 2030 were a reopening of previously issued series of bonds, initially issued on January 30, 2020.

The Dominican Republic intends to use the net proceeds from the sale of the bonds for general purposes of the government, including the partial financing of the 2021 budget.

The Cleary corporate team on the transaction included partner Juan Giráldez (Picture) and associates Ignacio Lagos and Sofia Falzoni. Senior attorney David Stewart Fisher and law clerk Drew Schaefer provided tax advice.

The Simpson Thacher team for the offerings included Jaime Mercado, Kirsten L. Davis and Laura Ribero (Capital Markets); and Jonathan Cantor and Brian Mendick (Tax).

Involved fees earner: Sofia Falzoni – Cleary Gottlieb Steen & Hamilton; Juan Giráldez – Cleary Gottlieb Steen & Hamilton; Ignacio Lagos – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Jonathan Cantor – Simpson Thacher & Bartlett; Kirsten Davis – Simpson Thacher & Bartlett; Brian Mendick – Simpson Thacher & Bartlett; Jaime Mercado – Simpson Thacher & Bartlett; Laura Ribero – Simpson Thacher & Bartlett;

Law Firms: Cleary Gottlieb Steen & Hamilton; Simpson Thacher & Bartlett;

Clients: Citigroup Global Markets Ltd; J.P. Morgan Securities LLC; Republic of Dominica;

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Author: Ambrogio Visconti.