The Dominican Republic has successfully launched its inaugural sovereign green bond, even as the IMF’s latest fiscal review called for reduced borrowing.
On 25 June 2024, the DR raised US$750mn in an issuance which was oversubscribed by six times as global investors demonstrated enthusiasm about the country’s new approach to raising capital. “With the results of this issue, the capital markets have once again shown their confidence in the government’s commitment to the protection of the environment, social needs and sustainable development, as well as the solid performance of the economy,” said the Finance Ministry.
The Ministry noted that the 12-year notes were issued with a 6.70% coupon rate, some 15 basis points lower than what would have been fetched for other non-thematic instruments with similar maturity. Proceeds of the bond issuance will fund green projects aligned with the country’s Sustainable Bond Framework, focusing on clean energy, sustainable transport, climate-resilient infrastructure, and efficient water management, as the government works towards its commitment to reduce greenhouse gas (GHG) emissions by 27% by 2030.
Source: Caribbean Insight