NEW YORK, Jan 22 (IFR) - The Dominican Republic set a final yield of 6.875% Friday on a US$1bn 10-year bond, Latin America’s first sub-investment grade deal of the year.
Leads Deutsche Bank and JP Morgan were able to squeeze pricing about 12.5bp from start to finish after generating an order book of some US$3bn.
The sovereign initially tested buyside appetite at very low 7% area, only to revise guidance to 6.875%-7.00%.
Pricing is expected later Friday. The Caribbean nation is raising funds for general purposes, including the partial financing of its 2016 budget. The 144A/Reg S deal is rated B1/BB-/B+. (Reporting by Paul Kilby; Editing by Marc Carnegie)