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Issuance of US$250.0 million for the CDEEE: Government's first dematerialized instrument

 

The issuance of the Government’s first dematerialized instrument was authorized by Law No. 490-08, approved on December 31st, 2008, amounting to US$250.0 million (equivalent to RD$8,814.6 million) to be allocated to the CDEEE current transfers. The total amount was placed on the same date in three series with maturities of 1, 2 and 3 years, and was bought by electricity generators.

In Article 6 of Decree No. 856-08, states that "the coupon to be paid is 10.60% per annum subject to tax on the perception of interests" and that "if the Congress approves a tax exemption on the perception of interests, then the effective rate of the coupon would be 8.00% per annum".

These bonds will be registered in the Securities Market of the Superintendency of Securities (Superintendencia de Valores), according to the Securities Market Law and its regulations. Furthermore, the titles will be registered electronically in a Securities Electronic Registration System and are not materialized.