Reservas bank. Photo M. Wesoly.
SANTO DOMINGO.- Continuing its flow of major capital markets deals in Latin America, Milbank, Tweed, Hadley & McCloy has advised Dominican Republic’s State-owned bank Reservas (BanReservas), in its first-ever bond offering.
The Reservas bank issued subordinated notes valued at US$300 million, of which approximately $123 million was treated as Tier II regulatory capital.
Founded in 1941 and wholly owned by the government, BanReservas is the largest commercial bank in the Dominican Republic in terms of total assets.
“We are honored to have represented BanReservas in its inaugural bond offering,”said Milbank partner Marcelo Mottesi, head of the firm’s Global Securities Practice who led the deal team.
BanReservas played a key role in pioneering the banking sector in the Dominican Republic more than 70 years ago and has grown into a full-scale commercial bank serving business and personal lending needs in the country.
This offering boosts the ban’s capital and also allows it to better serve its client base across the country.
In addition to Mr. Mottesi, the Milbank team advising BanReservas included Tax partner Andrew Walker, counsel Frank Vivero, and associate Elizabeth Rosado.
Written by: josean, 6 Feb 2013 2:41 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
More PURPLE Debt!
Written by: Danilo, 6 Feb 2013 3:32 PM
From: Dominican Republic, www.DuckyDeals.com
Step 1 to resolving the electricity issue!
From: United States
poor Danilo. he thinks that this is to resolve the electricity. where do they find these people?
Written by: josean, 6 Feb 2013 4:14 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
"where do they find these people?"
The local PLD headquaters!
From: Dominican Republic, calle A.Portes
I suppose Josean does not understand that banks need money so they can lend money ..I personally know of 10 banks that are at present raising funds by bonds issues ..
Written by: josean, 6 Feb 2013 6:06 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
"raing funds"
Is that a new Financial term Adam Smith?
From: Dominican Republic, calle A.Portes
for you yes
Written by: rokete, 7 Feb 2013 3:49 AM
From: Dominican Republic, Santo Domingo
I hope that some of that money, ends up contributing to Dominican financial education.
That is if we don't get siphoned first, by to the IMF and the World Bank.
We are already very compromised.
From: Dominican Republic, calle A.Portes
The government is highly unlikely to ear mark the money for any specific project ,,it will go into consolidated revenue to be used with other money to proceed with the already announced budget programmes... most of these have been announced already
Written by: juanb, 7 Feb 2013 3:03 PM
From: Dominican Republic
Did they announce the percentages for new cars and new houses?
I must have missed it.
From: United States
actually, Ricardolito, i understand this money to be an injection of liquidity to BanReservas, which is having problems with its levels.
Written by: rokete, 7 Feb 2013 3:07 PM
From: Dominican Republic, Santo Domingo
Medina bonds are not the way to go.
This is only debt creation and interest payment.
Stay away from debt, the IMF and the World Bank.
The IMF and World Bank, are a group of trained thugs, that are siphoning the wealth of nations around the globe.
There purpose is to fill the coffers, of a hand full of European elite, of investors and bankers.
While leaving us with more poverty and despair.
Medina pay the external debt with the gold from Pueblo Viejo.
Base the Dominican peso on gold and silver reserves.
Then make all the money you need, like Balaguer, and reclaim it when suited to avoid inflation.
The same way Abraham Lincoln did with the greenback dollars, in the US during the civil war.
Then Prosperity will be almost automatic in DR.
From: United States
rokete, now i see why you are always talking about weed. or are you high on something more potent?
From: United States
says rokete
Base the Dominican peso on gold and silver reserves.
so, genius, if you base the currency, on precious metal reserves, you do realize that that means that printed paper money and minted coins would be redeemable in such metals, right? how long do you think it would be before some hedge fund guy exchanges a few billion dollars into pesos, then demands gold in return? where did you study economics? the Atabey Academy?
From: Dominican Republic, calle A.Portes
Dreadlocks I do not know that ..I was merely going by previous press releases ..but I guess if the bank is not meeting the Reserve Bank manadatory levels , then a bond issue may be the best way to go ,,,surprised that it has been the first . Westpac in Australia has had an issue oversubcribed by double at historically low rates ..they use the bank rate plus a margin ..so I doubt if there will be a problem raising the funds, even though it appears not to be underwritten
From: United States
there was an article on this bond offering in a newspaper last week. it did have to do with what you said...liquidity problems at BanReservas. the economist was concerned that it would take a bond offering to raise funds, reflecting a less than satisfactory private savings rate.
Written by: rokete, 7 Feb 2013 8:47 PM
From: Dominican Republic, Santo Domingo
Dreadlocks
It does not need to be necessarily redeemable, with out special order.
The Dominican peso was based on gold reserves during Trujillo.
It was not necessarily redeemable without special order.
It was in effect then, It could be in effect now.
It will save us all from the disaster that world renown economist, are getting the world into.
A pendulum of up swings or depression, inflation, and debt.
I wonder of what use are economists now a days ???
Except maybe to shoot their mouths, at what they know, otherwise, is effective !!!!
From: United States
rokete, stick to what you know. the position of Official Sabelotodo is already taken. how many years did you spend studying economics? just asking.
Written by: rokete, 7 Feb 2013 9:04 PM
From: Dominican Republic, Santo Domingo
Dreaddloks,
Unfortunately for you, you seem to be too full of yourself, with bolstering arrogance !!!
I know everyone has limitations, including me, and you.
I don't profess to be a know it all, unlike other people in this forum.
If you truly analyze what I wrote, without being biased, you would come to the conclusion that it makes sense, even if you don't agree.
I have a master of Finance degree.
I may not know all there is to know, but here I know what I am talking about.
From: United States
if you had a master's of finance degree, then you would not be saying that you suggest returning to a gold backed monetary system. that is absolute nonsense. you do realize that the precious metals have to back the amount of currency in circulation, don't you? each monetary unit has to be backed by a specified amount of metal. do you realize the difference between the amount of gold needed to back the currency in the time of Trujillo, and the currency today? why do you think that countries are not entertaining the idea of returning to the gold standard? besides, where do you get the idea that the DR currency was on the gold standard during Trujillo?
Written by: rokete, 8 Feb 2013 2:44 AM
From: Dominican Republic, Santo Domingo
Dredlocks
Yes, precious metal have to back a certain amount of currency in circulation. But not totally.
The Swiss Franc was based on a 40% legal gold-reserve requirement from1936 to the year 2000.
Gold reserves are held in significant quantity by many nations as a means of defending their currency, and hedging against the U.S. Dollar, which forms the bulk of liquid currency reserves.
The same can be done in the Dominican republic.
This is a recent Gold reserves agreement:
"Beginning in 1999, European central bank and 11 European national banks signed the Washington Agreement on Gold declaring that: "gold will remain an important element of global monetary reserves".
It would be convenient for the Dominican Republic to do the same.
Gold reserves can help a nation like our hedge against hyperinflation, and economic downfall.
Written by: rokete, 8 Feb 2013 3:11 AM
From: Dominican Republic, Santo Domingo
Dreadlocks
Gold Standard during Trujillo"s era was officially embraced in 1937.
Coins were introduced in 1937 in various denominations.
However, the first 1 peso in gold coins, was first minted in 1939.
When the peso oro was introduced in 1937, no paper money was made, only silver coins, and gold in 1939, together with US notes that continued to circulate.
Only in 1947 were the first peso oro, in notes, issued by the Central Bank.
Base metal replaced silver and gold, in the higher denominations in 1967.
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More PURPLE Debt!
"where do they find these people?"
The local PLD headquaters!
"raing funds"
Is that a new Financial term Adam Smith?
I hope that some of that money, ends up contributing to Dominican financial education.
That is if we don't get siphoned first, by to the IMF and the World Bank.
We are already very compromised.
Did they announce the percentages for new cars and new houses?
I must have missed it.
Medina bonds are not the way to go.
This is only debt creation and interest payment.
Stay away from debt, the IMF and the World Bank.
The IMF and World Bank, are a group of trained thugs, that are siphoning the wealth of nations around the globe.
There purpose is to fill the coffers, of a hand full of European elite, of investors and bankers.
While leaving us with more poverty and despair.
Medina pay the external debt with the gold from Pueblo Viejo.
Base the Dominican peso on gold and silver reserves.
Then make all the money you need, like Balaguer, and reclaim it when suited to avoid inflation.
The same way Abraham Lincoln did with the greenback dollars, in the US during the civil war.
Then Prosperity will be almost automatic in DR.
Base the Dominican peso on gold and silver reserves.
so, genius, if you base the currency, on precious metal reserves, you do realize that that means that printed paper money and minted coins would be redeemable in such metals, right? how long do you think it would be before some hedge fund guy exchanges a few billion dollars into pesos, then demands gold in return? where did you study economics? the Atabey Academy?
Dreadlocks
It does not need to be necessarily redeemable, with out special order.
The Dominican peso was based on gold reserves during Trujillo.
It was not necessarily redeemable without special order.
It was in effect then, It could be in effect now.
It will save us all from the disaster that world renown economist, are getting the world into.
A pendulum of up swings or depression, inflation, and debt.
I wonder of what use are economists now a days ???
Except maybe to shoot their mouths, at what they know, otherwise, is effective !!!!
Dreaddloks,
Unfortunately for you, you seem to be too full of yourself, with bolstering arrogance !!!
I know everyone has limitations, including me, and you.
I don't profess to be a know it all, unlike other people in this forum.
If you truly analyze what I wrote, without being biased, you would come to the conclusion that it makes sense, even if you don't agree.
I have a master of Finance degree.
I may not know all there is to know, but here I know what I am talking about.
Dredlocks
Yes, precious metal have to back a certain amount of currency in circulation. But not totally.
The Swiss Franc was based on a 40% legal gold-reserve requirement from1936 to the year 2000.
Gold reserves are held in significant quantity by many nations as a means of defending their currency, and hedging against the U.S. Dollar, which forms the bulk of liquid currency reserves.
The same can be done in the Dominican republic.
This is a recent Gold reserves agreement:
"Beginning in 1999, European central bank and 11 European national banks signed the Washington Agreement on Gold declaring that: "gold will remain an important element of global monetary reserves".
It would be convenient for the Dominican Republic to do the same.
Gold reserves can help a nation like our hedge against hyperinflation, and economic downfall.
Dreadlocks
Gold Standard during Trujillo"s era was officially embraced in 1937.
Coins were introduced in 1937 in various denominations.
However, the first 1 peso in gold coins, was first minted in 1939.
When the peso oro was introduced in 1937, no paper money was made, only silver coins, and gold in 1939, together with US notes that continued to circulate.
Only in 1947 were the first peso oro, in notes, issued by the Central Bank.
Base metal replaced silver and gold, in the higher denominations in 1967.