Jamaica vs Dominica Republic Petrocaribe Debt by back.

Dominica

The Dominican Republic (DR) bought back 98.5% of its US$ 4.12 billion outstanding debt with PDVSA under the PetroCaribe arrangement on January 30th, 2015. At a 52% discount, the outright debt reduction of US$ 2.1 billion represented 3.3 percentage points (pp) of GDP.

Financing Needs

The country’s 2015 financing needs are US$3.8 billion, of which the fiscal deficit is US$1.6 billion (-2.4% of GDP). DR already tapped the international market with two new bonds (DR 25’ and DR 45’) for a combined amount of US$ 2.5 billion, of which US$ 1.93 billion were used to buy back the Petro Caribe debt. Net of the debt buyback, the government is left with US$560 million from the global issuance. After counting in the projected financing in the local market (US$900 million) and bi- and multilateral institutions, we estimate a remaining financing gap of around US$1.3 billion

Dominca Bond Coupon Payment/ Int Rate

Issuer, issue number Dominican Republic, 2025
Type of debt instrument International bonds
Issue status outstanding
Type of placement Public
Par, currency of issue USD 100,000
Amount 1,500,000,000
ISIN USP3579EBD87
Start of placement 01/20/2015
End of placement 04/30/2015
Initial issue price 100
Yield at pricing 5.5
Coupon 5.5%
Coupon frequency 2 time(s) per year
Settlement date 01/27/2015
Maturity date 01/27/2025

Second Bond Interest Rate

Issuer, issue number Dominican Republic, 2045
Type of debt instrument International bonds
Issue status outstanding
Type of placement Public
Par, currency of issue USD 100,000
Amount 2,000,000,000
ISIN USP3579EBE60
Start of placement 01/20/2015
End of placement 04/30/2015
Initial issue price 100
Yield at pricing 6.85
Coupon 6.85%
Coupon frequency 2 time(s) per year
Settlement date 01/27/2015
Maturity date 01/27/2045

Jamaica bond pricing comparison

Issuer, issue number Jamaica, 6.75% 2028, USD
Type of debt instrument International bonds
Issue status outstanding
Type of placement Public
Par, currency of issue USD 200,000
Amount 1,350,000,000
ISIN US470160CA80
End of placement 07/23/2015
Initial issue price 99.96
Coupon 6.75%
Coupon frequency 2 time(s) per year
Settlement date 07/28/2015
Maturity date 04/28/2028
 

Second Bond Pricing

Issuer, issue number Jamaica, 7.875% 2045, USD
Type of debt instrument International bonds
Issue status outstanding
Type of placement Public
Par, currency of issue USD 200,000
Amount 650,000,000
ISIN US470160CB63
End of placement 07/23/2015
Initial issue price 100
Yield at pricing 7.875
Coupon 7.875%
Coupon frequency 2 time(s) per year
Settlement date 07/28/2015
Maturity date 07/28/2045

Dominica Republic went into the market at got rates at least 1.025 & 1.25% better than Jamaica

Hmm

Rather interesting

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One Response

  1. the comparison could be further improved….whats the fiscal impact in the respective jurisdictions?

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