This Tuesday 9, 2010 the Ministry of Finance of the Dominican Republic, through the Public Debt Office, started the 2010 Monthly Auction Program, continuing with the Public Securities Auction Program initiated in 2009 with the issuance of the Bonds of 2, 3, 5 and 7 years.  This year, the MoF created the newly Treasury Bills Program, issuing Bills for 3, 6 and 9 months.

In 2010, the Bond Auction Program includes two issuances with maturity dates of 3, 5 and 7 years while the first one having issuance dates of February 9, 6 and 8, respectively and the second one in August 9, 7 and 4 of 2010 respectively. This first issuance is for the amount of RD$4,000.0 million (about US$110 million at the exchange rate of 36.25 per dollar) for each maturity, and the second issuance if for the amount of RD$3,500 million (about 96 million at the exchange rate of 36.25 per dollar). The coupons rates for the first emission are of 12%, 14% and 16% for the bonds maturing in 3, 5 and 7 years respectively.

The Treasury Bills for 2010 Program included the emission of 3, 6 and 9 months Bills emitted in February 7, 9 and 5 respectively. This first issuance of zero coupon T-Bills are for the amount of RD$2,000 million each.

The first auction of the year offered RD$10,500.0MM distributed in Treasury Bills and Bonds for the amount of RD$5,000.0MM and RD$5,500.0MM, respectively. The amount offered for Bonds were of RD$4,000 millions for the 3 year series and RD$750 million for the 5 and 7 year series. The amount offered for T-Bills were of RD$2,000 millions for the 3 months series and RD$1,500 million for the 6 and 9 months series.

This auction received offers for RD$12,944.1MM from commercial banks, saving and loans associations and brokerage firms for their own accounts and on behalf of their clients. Of this total, RD$4,511.4MM was allocated, RD$3,911.4 millions correspond to Bonds and RD$600 millions to T-Bills.  The amount allocated for the 3, 5 and 7-year bonds totaled RD$3,595.4MM; RD$118.8MM and RD$197.2MM, auctioned at weighted average interest rates of 11.9942%, 14.2155% and 15.8658%, respectively. The 89-day, 150-day and 273-day Treasury Bills assigned totaled RD$300.0MM, RD$200.0MM and RD$100.0MM auctioned at the weighted average rates of 5.0500%, 5.2501% and 5.5000%, respectively.