The Firm recently represented Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, as initial purchasers, in connection with the issuance and sale by the Dominican Republic of US$750,000,000 aggregate principal amount of its 6.600% Bonds due 2036, US$500,000,000 aggregate principal amount of its 7.050% Bonds due 2031 and DOP$105,000,000,000 aggregate principal amount of its 10.750% Bonds due 2036. The 7.050% Bonds due 2031 represented additional securities of a series that had been issued in the aggregate principal amount of US$700,000,000 in February 2023. The sovereign debt offerings were conducted in reliance on the exemptions from registration under Rule 144A and Regulation S.
The Firm also represented Citigroup and J.P. Morgan as dealer managers in connection with the repurchase by the Republic of a portion of its outstanding 5.500% Bonds due 2025 in a concurrent cash tender offer.
The proceeds from the offerings were used to pay the consideration for the bonds that were validly tendered and accepted in the tender offer, with the remainder for general purposes of the Government of the Republic, including the partial financing of the 2024 Budget. In addition, the Republic intends to allocate an amount equal to the net proceeds from the 6.600% Bonds due 2036 to fund budgetary programs that qualify as “eligible green expenditures” under the Republic’s Green, Social, and Sustainability Bond Framework.
The Simpson Thacher team included Juan F. Mendez, Kirsten L. Davis, José M. Colin and Matias Allende (Capital Markets); Michael Mann and Andrew Mandelbaum (Tax).