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Sygnus Credit Investments Marks First Listing of 2024 On Jamaica Stock Exchange

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News Americas, KINGSTON, Jamaica, Fri. Jan. 26, 2024: Jamaican company, Sygnus Credit Investments, (SCI), has made a significant move by listing its preference share offer on the main market of the Jamaica Stock Exchange, (JSE). This listing, which occurred on January 19th, marks the first of the year and is part of a larger strategic move by the company.

The preference share offer comprised three tranches and garnered considerable attention from investors. In fact, it was oversubscribed by an impressive 102% following a successful closing in December. This achievement highlights the strong demand for SCI’s offerings in the market.

Jason Morris, Chief Investment Officer and Executive Vice President, Sygnus, inserts strip as members of the Sygnus, JMMB and Jamaica Stock Exchange teams look on. (Front L to R) Dr Marlene Street Forrest, Managing Director, JSE Group, Karl Townsend, Chief Country Officer (Jamaica), Capital Markets Unit, JMMB, Linval Freeman, Chairman, Sygnus Credit Investments. (Back L to R) Berisford Grey, CEO and President, Sygnus, Alana Lawrence, Manager Capital Markets Unit, JMMB, and Gregory Samuels, Lead Arranger, Head of Investment Banking and Senior Vice President, Sygnus Capital.

This transaction is noteworthy not only for SCI but also for the JSE. It represents the largest capital raise in SCI’s history and stands as the largest capital raise on the JSE in over a year. Additionally, in terms of USD capital raise, it is the most significant transaction on the JSE since SCI’s initial public offering.

Dr. Marlene Street Forrest, Managing Director of the JSE Group, commended SCI for effectively utilizing the stock market to further its strategic plans. She noted that this listing represents a remarkable start to the year, surpassing the total capital raised in the main, junior, and US-denominated markets for 2023.

All three classes of SCI’s preference shares saw overwhelming interest from investors. The company successfully raised a total of J$8.0 billion equivalent. This substantial capital infusion reflects investor confidence in SCI’s growth prospects and its ability to deliver value.

Berisford Grey, CEO and President of Sygnus, expressed his gratitude to subscribers and emphasized the company’s pioneering role in the alternative investment space. He highlighted SCI’s commitment to driving economic growth across the region and creating wealth for investors.

SCI’s diverse investment approach encompasses various industries, including manufacturing, distribution, financial services, energy, and more. The company remains focused on expanding its private credit portfolio and participating in private credit transactions across the Caribbean, with a target of at least US$1 billion over the next three years.

Karl Townsend, JMMB’s Chief Country Officer (Jamaica), Capital Markets Unit, praised the overwhelming response to the offering. JMMB played a significant role in the success of the preference share offer, raising J$1.6 billion and US$40 million through JMMB Moneyline and its newly launched JMMB Moneyline IPO.

The successful listing of SCI’s preference shares underscores the company’s growth trajectory and the strong partnership between SCI and JMMB. It also highlights the growing investor interest in this asset class and the confidence in SCI’s strategic direction.

SCI’s listing on the JSE represents a significant milestone for the company and the exchange. It reflects SCI’s commitment to growth, innovation, and delivering value to its investors. The capital raised will enable SCI to pursue its ambitious growth initiatives in the Caribbean region.

Guyana Aims To Capitalize On Carbon Credits

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News Americas, NEW YORK, NY, Mon. Jan. 22, 2024: Guyana is strategically focusing on increasing its revenue from carbon credits as it strives to mitigate its environmental impact, especially in light of its burgeoning offshore oil reserves, Latin Finance reports.

In late 2022, this South American nation inked a significant agreement with US-based oil and gas producer Hess Corporation. Finance Minister Ashni Singh indicated to Latin Finance that Guyana is poised to initiate new carbon credit deals when the market conditions are favorable. The agreement with Hess, a member of a consortium involved in oil exploration in Guyana, encompasses a value of $750 million in carbon credits spread over a 15-year period.

Guyanese Lindon Peter, a resident of Arau village, carries supplies back to his village, after walking two hours through the jungle to reach the community of Mango Landing to buy supplies on December 11, 2023. (Photo by ROBERTO CISNEROS/AFP via Getty Images)

This landmark deal accounts for approximately one-third of the total carbon credits that Guyana can offer, according to Singh. He expressed that they received multiple offers when finalizing the agreement with Hess, affirming that there is substantial interest from various parties. Singh, in an interview during the World Bank/IMF annual meeting in Marrakech, Morocco, emphasized the importance of timing to secure the best possible price, indicating that carbon credits represent the third source of income for the country, following domestic revenue mobilization and oil revenue. While Singh didn’t rule out the possibility of issuing a sovereign bond in the future, Guyana is eager to establish its reputation in the carbon credit market.

The Hess deal holds particular significance for Guyana as private companies, led by ExxonMobil, are scaling up oil production more than 100 miles off its coast. With over 25 discoveries in Guyana’s waters, the country is expected to produce approximately 1.2 million barrels of oil per day by 2027.

Guyana’s first foray into carbon credits occurred in the early 2000s when it received around $250 million from Norway for its efforts in forest conservation. Notably, two-thirds of Guyana is covered by Amazon forests, and the government, under President Irfaan Ali, aims to leverage the country’s impressive track record in averting rampant deforestation, setting it apart from other members of the Amazon Cooperation Treaty Organization. In a new category known as “high forest cover/low deforestation countries,” Guyana ranks first among 33 nations globally. The government is resolute in its stance that preserving standing forests is an efficient means of combating climate change and seeks compensation for its conservation efforts.

Furthermore, Guyana is taking proactive steps to reduce greenhouse gas emissions from its energy sector by transitioning to natural gas, hydroelectric plants, and solar power generation, while also ensuring that new transportation and agri-business infrastructure align with environmentally friendly practices. The ambitious plan includes adding 50,000 acres of new farmland equipped with irrigation and drainage systems designed to minimize environmental impact. Singh underscored that despite Guyana’s trajectory as a significant oil producer, its vast forests and minimal environmental footprint position it as a carbon-sink country. He emphasized that the story of sustainable forest management, in many ways, parallels the narrative of its oil industry and is equally crucial in addressing global environmental challenges.

The push comes as Guyana has been forced to defend its territory from Venezuela, which wants to annex its Essequibo region, home to most of the country’s forests and natural resources.

What’s In That Guyana Trillion Dollar Budget?

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News Americas, NEW YORK, NY, Tues. Jan. 16, 2024: The Guyana government on Monday Jan. 15th, unveiled its largest ever fiscal budget to date – GUY$1.146 trillion or US 5.84 billion, allocating significant funds for the further development of sectors such as energy, agriculture, health, and infrastructure. Finance Minister Dr. Ashni Singh, in his fifth fiscal package presentation, emphasized that the budget is 46 percent larger than the previous one.

Here’s a summary of the Guyana Budget 2024.

Income Tax Threshold Raised: Monthly income tax threshold increased to $100,000, raising annual Personal Allowance to $1,200,000.

Life and Medical Insurance Deductions: Taxpayers can now deduct premiums for life and medical insurance up to 10% of their income or $50,000 monthly, promoting insurance coverage.

Duty and VAT Removal: Sports equipment, essential cell phone accessories, and firefighting equipment will have Duty and VAT removed to enhance access.

Fuel Cost Control: Zero percent excise tax on petroleum products will be maintained to mitigate rising fuel prices.

Reduced Freight Charges: Adjusted import freight charges to pre-pandemic levels extended for 12 months from January 2024.

Pension and Assistance Increases: Old Age Pension, Public Assistance, Minimum Pension, Survivor’s Pension, and Invalidity Pension all set to increase in 2024.

University Support: Elimination of outstanding loans for University of Guyana graduates employed or self-employed in Guyana after graduation.

Grants and Student Support: One-off grants for those near the old age pension qualification, increased student grants, and uniform voucher allowances.

Cost of Living Measures: $7 billion allocated for measures to aid food production and mitigate price increases.

Part-Time Job Expansion: Expansion of the Part-Time Job Programme, allowing one person per household to work in public offices.

Small Business Support: Collaboration with banks to lower interest rates on loans up to $5 million to support small businesses.

Eye Care and Health Services: Vouchers for eye tests and spectacles for school children and pensioners, as well as support for cervical cancer testing.

These measures aim to boost various sectors and enhance the well-being of citizens in the coming year, the minister stressed.

These 7 New Hotels Will Open In The Caribbean This Year

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News Americas, NEW YORK, NY, Sat. Jan. 13, 2024: Seven exciting new hotels are set to open in the Caribbean region this year, boosting the region’s tourism product. They are:

1: St. Regis Cap Cana, Dominican Republic

Nestled within Cap Cana’s exclusive five-star real estate, the St. Regis Cap Cana will open this Spring and will be a luxurious retreat with a 200-room hotel and 70 luxury homes. Surrounded by a scenic golf course, this resort boasts 800 feet of private beachfront and stunning views of crystal blue waters and the Punta Espada Golf Club.

When viewed from above, the St. Regis Cap Cana seamlessly integrates with the picturesque Punta Espada Golf Course. The verdant rooftop of the development adds a touch of serenity to the already stunning beachside vistas, complementing the Dominican Republic’s pristine crystal blue waters and the lush scenery of the Punta Espada Golf Course. Acebal’s design thoughtfully includes 15 Golf Terrace residences, providing a prime vantage point overlooking holes #1 and #2 for an unparalleled golfing experience.

2: Sandals Saint Vincent and The Grenadines Resort

Nestled in a valley amongst lush mountains and the cobalt blue Caribbean sea, Sandals Saint Vincent and The Grenadines unlocks a new island destination for Sandals Resorts guests, opening March 27, 2024.

Sandals’ latest offering will open in Saint Vincent and the Grenadines on March 27th. It features 301 rooms, suites, and villas, including two-story overwater villas. There will be sixteen unique food and beverage concepts, including the brand’s first communal restaurant, Buccan. Sandals Saint Vincent and The Grenadines will offer 301 superbly appointed rooms and the portfolio’s most expansive suites to date, with Two-Bedroom Butler Villas spanning across the waterfront – a “Sandals First.” Interiors throughout feature special biophilic elements and the warmth of local volcanic materials, and views intentionally framing the unique flora.

Vincy Overwater Two-Story Villas reimagine Sandals’ iconic suites, with an evolved design across two stories built directly atop the sea, complete with a rooftop outdoor lounge with views as far as the eye can see. Select villas and suites throughout the resort up the ante with a dedicated space for movie nights in, and private fitness rooms with Technogym equipment, athletic programming, and an assortment of free weights. A focal point from the open-air lobby, a 300-foot linear pool appears to meet the horizon, flanked by posh cabanas and Swim-Up Bar access. An adjacent crescent-shaped pool invites guests to lounge and swim under the Saint Vincent sun, while Parisol’s double-crescent infinity-edge pool hugs the sand and overlooks the bay. Built along the riverside, the sound of flowing water will surround Red Lane Spa cabanas to really connect guests with the serene outdoors. Beyond the sand, the destination’s prime location on the Atlantic shelf makes it one of the Caribbean’s most abundant with local fish, with Sandals all-inclusive resort as a gateway to incredible snorkeling and scuba diving – and other exploration opportunities galore.

3: Zemi Miches All-Inclusive Resort, Dominican Republic

Part of the Curio Collection by Hilton, this resort will open in the DR this year. It will feature opens with 503 rooms and bungalows, including swim-up room options. Enviably located north of Punta Cana in the coastal town of Miches, the brand-new 502-room all-inclusive resort will welcome travelers to an area known for its pristine beaches, sprawling mountain landscapes and lush natural surroundings. The property is owned by Zemi Hotels & Resorts, S.R.L. and will be managed by Hilton. It will include 123 ground level swim-up guest rooms featuring individual plunge pools that connect via a winding pool allowing guests to swim to other areas of the resort.

4: Bermudiana Beach Resort, Bermuda

Located near Bermuda’s pink sand beaches, this Tapestry Collection by Hilton resort will open in October. It will offer 111 rooms, a cliff-top bar, ocean-view pool, and beachfront access. Overlooking Marley Beach, this clifftop resort is five minutes from the famous Horseshoe Bay Beach. The capital city of Hamilton is just 15 minutes away, and Southlands Park is right outside its doors. Each of its suites has a balcony or terrace while the resort will have two pools, a clifftop bar and restaurant, and an outdoor events lawn.


5: Six Senses La Sagesse, Grenada

Set along La Sagesse beach, this wellness resort will open in May. It will offer 71 suites and villas built with repurposed materials. Surrounded by nature, it will also include 56 pool suites combine eco-credentials and comfort, each leading to a private plunge pool for a cooling dip. In addition, there will be 15 villas enjoying a prime hillside or beachfront setting, ranging between one, two, and four bedrooms. The five four-bedroom villas on the Bluff offer a 270-degree view of one of the most coveted locations in the Caribbean.

6: Royalton CHIC Antigua

Blue Diamond Resorts is gearing up to launch an adults-only, all-inclusive resort on Antigua’s picturesque northwest coast in April of next year.

Formerly known as Starfish Halcyon Cove, this resort is currently undergoing an extensive renovation, with significant enhancements planned for the Diamond Club sections, pool areas, spa, restaurants, and lobbies. While two existing buildings will still be utilized for guestrooms, they have been completely refurbished, rendering them practically new inside.

The Royalton Chic Antigua will boast a total of 235 well-appointed guestrooms, each featuring a private balcony or terrace to enhance the guest experience.

Dining enthusiasts will have a delightful array of options with seven restaurants on-site, complemented by five bars. The resort also offers sports and fitness facilities, as well as a rejuvenating spa. For added convenience, guests can enjoy round-the-clock room service during their stay.

7: Hotel Indigo Grand Cayman

Hotel Indigo Grand Cayman is set to open on June 1, 2024 near Seven Mile Beach. The 10-storey hotel being constructed along the Esterley Tibbetts Highway just south of Kimpton Seafire Resort + Spa will feature 282 guest rooms and a 6,700 square foot ballroom, the latter of which will serve well for local and tourist-focused conferences and events. It will also include a stunning ocean-view pool, and pet-friendly accommodations at this IHG Hotel.

For capital for commercial real estate check out Invest Caribbean Now.

Guyana Is Lone Caribbean Country Forecast To Grow Significantly This Year

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By NAN Business Writer

News Americas, WASHINGTON, D.C., Tues. Jan. 9, 2023: The South American CARICOM nation of Guyana is the lone Caribbean Community member set to achieve double digit GBP growth this year according to World Bank forecasts.

According to the ‘Global Economic Prospects” for January 2024, Guyana will likely reach a whopping 38.2 percent real GDP growth this year compared to 29 percent in 2023.

No other Caribbean nation is forecast to get to double digits.

“The Caribbean economies are expected to grow 7.6 percent in 2024 and 5.4 percent in 2025, after expanding 4.6 percent in 2023,” the authors of the report said. “Excluding Guyana, which remains in a resource-based boom since the discovery of oil in 2015, the region’s growth is expected to accelerate to 4.1 percent in 2024 and 3.9 percent in 2025. However, prospects are uneven across the sub-region.”

The World Bank added that “the post-pandemic recovery of tourism in the sub-region is incomplete and is expected to continue driving growth.”

Additionally, “remittances into the Caribbean are also expected to continue increasing, albeit at a slower pace.”

The second highest growth of 5.1 percent is set to be recorded by the Dominican Republic amid structural reforms to attract FDI, and the third highest by Dominica of 4.6 percent.

Barbados is forecast for 4 percent growth, the fourth highest for the Caribbean but a drop from 4.6 percent in 2023. Grenada is forecast for 3.8 percent, a drop by one percentage point from last year.

Here’s where the other Caribbean nations line up:

Belize – 3.5 percent, a drop from 4.5 percent last year.

Jamaica – 2 percent, down from 2.3 percent in 2023.

St. Lucia – 2.9 percent, down from 3.2 percent last year.

St. Vincent and the Grenadines – 4.8 percent, down from 6 percent in 2023.

Suriname – 2.6 percent, up from 2 percent last year.

The Bahamas – 1.8 percent, a drop from 4.3 in 2023.

Haiti – 1.3 percent, up from -2.5 percent last year.

Pioneering Job Career Program Launched By UAE And Saudi Arabia Welcomes Global Talent, Including Caribbean Nations

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News Americas, Dubai, UAE, Weds. January 3rd 2024: Vanguard MENA, a prominent private equity firm based in the Middle East, has unveiled the Gulf Career Program following the Global Labor Market Conference 2023 held in Riyadh, Saudi Arabia. Minister of Tourism Ahmed Al Khateeb emphasized the Kingdom’s commitment to generating 250,000 job opportunities for Expo 2030 and an additional one million jobs by that year during the conference.

Recognized by Vanguard MENA’s Managing Partner Jassim Al-Thani as a pivotal catalyst for regional growth, the Gulf Career Program focuses on the dynamic economies of the UAE and Saudi Arabia. With a global reach extending to 56 countries and a target of 100,000 participants, the program aims to stimulate international career development and attract talent to the vibrant Gulf region. Aligned with Saudi Arabia’s Vision 2030 and the UAE Economic Vision 2030, it underscores Vanguard MENA’s dedication to driving innovation and progress.

Supported by a substantial $10 million USD fund allocated for its development, the Gulf Career Program will back localized training initiatives, offer financial aid to selected regions, and strengthen its commitment to empowering the entire region. Participants will gain access to e-training platforms, global career seminars, and career mentorship.

Launching registration in stages, the program will progressively debut across diverse regions on www.gulfcareerprogram.com. This rollout encompasses North and South America, Europe, Africa, Asia, and The Caribbean, featuring tailored seminars and interviews. Serving as a vital link connecting global talent with opportunities in the GCC region, the initiative capitalizes on the unique strengths of Saudi Arabia and the UAE. Its objective is to establish a vibrant ecosystem, enabling professionals worldwide to actively contribute and thrive within the flourishing Gulf economies.

The Caribbean region takes the lead in open registration until February 15th, followed by scheduled regional interviews and career seminars locally hosted from March 12th. Individuals eager to pursue their ideal job and relocate to the Gulf region can register online at www.gulfcareerprogram.com.

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About Vanguard MENA

Vanguard LLC (MENA) is a premier private equity firm, recognized for its formidable leadership within the burgeoning Middle Eastern market. With assets under management reaching $124 billion, we are positioned at the forefront of driving growth and innovation in this dynamic region. Operating out of Dubai, United Arab Emirates, our strategic presence enhances our ability to capitalize on the high-growth opportunities that the Middle East offers. www.vanguardmena.com       

Moody’s Raises Ratings On Suriname Following Debt Restructuring

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News Americas, NEW YORK, NY, Tues. Dec. 19, 2023: Suriname, a member of the Caribbean Community, (CARICOM), has received upgraded ratings from Moody’s after successfully restructuring its debt.

Holders of Suriname’s two Eurobonds, which had been in default since the end of 2020, were offered new debt instruments worth US$660 million and an oil-linked security in exchange for their defaulted debt. This exchange applied to holders of Suriname’s notes due in 2023 and 2026. Suriname has also reached restructuring agreements with several official creditors, although agreements with some other commercial domestic and foreign creditors for smaller debt amounts are still being finalized.

As a result of these developments, S&P Global Ratings raised its long- and short-term foreign and local currency sovereign credit ratings on Suriname from ‘SD’ (selective default) to ‘CCC+/C’ on December 6, 2023. The outlook for the long-term ratings is stable.

The stable outlook reflects the government’s commitment to fiscal reform and macroeconomic stabilization, along with the completion of the debt restructuring. However, it also considers the risks associated with developing institutions and governance weaknesses, including debt management.

S&P Global Ratings has outlined possible scenarios for Suriname’s ratings. In a downside scenario, the ratings could be lowered if expected financing from multilateral lending institutions fails to materialize or if other policy or administrative developments increase the likelihood of another default. In an upside scenario, the ratings could be raised if the government continues to make progress in concluding restructuring agreements with creditors, meets the conditions of multilateral lending institutions, strengthens debt management, and implements proactive economic policies that reduce the likelihood of another commercial debt payment default.

The ‘CCC+’ long-term sovereign ratings for Suriname indicate its dependence on favorable economic conditions to meet its financial commitments. The ratings also take into account factors such as high inflation, a challenging socio-political environment, and vulnerabilities in the financial sector.

Suriname’s recent debt restructuring follows missed payments on commercial debt and subsequent restructuring announcements in 2020 and 2021. S&P Global Ratings upgraded Suriname’s long-term rating to ‘CCC+’ following the successful debt exchange, which addressed the government’s outstanding U.S. dollar bond debt. The restructuring extended the maturities of the bonds to 2033 and included an accrued interest rate of 7.95%, with a payable rate of 4.95% before 2026. Principal payments on the bonds are not due until January 2027. Additionally, an oil-linked security with a notional amount of US$314.7 million was introduced, payable only if Suriname receives oil royalties from offshore Block 58. Bondholders will receive a share of the yearly oil royalties from Block 58 after the government receives US$100 million in royalties.

This debt exchange is expected to be the final resolution for the 2023 and 2026 bonds, and it reduces the near-term litigation risk related to future debt service.

Jamaica Offers Nearly 300MW Of Renewable Energy Projects for Development

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News Americas, KINGSTON, Jamaica, Tues. Dec. 19, 2023: Jamaica’s power utility, Jamaica Public Service (JPS), has opened the call for expressions of interest (EOIs) for the engineering, procurement, and construction of renewable energy projects totaling almost 300MW. These projects include a 115MW utility-scale solar plant, 172MW of battery storage across multiple sites, and a 12MW onshore wind farm. JPS aims for these projects to commence commercial operations between 2026 and 2027.

Interested parties have until December 22 to submit their EOIs, with more information available on the official website. Following the submission deadline, a group of shortlisted firms will be invited to submit formal offers, and the awarding of contracts is scheduled for the last quarter of the following year.

This initiative aligns with the government’s goal to procure 100MW of renewable energy, contributing to Jamaica’s target of achieving 50% renewable energy by 2030. Currently, the country’s installed capacity stands at 1,041MW, with approximately 83% derived from thermal sources, mainly natural gas, while the remaining capacity comes from renewable sources such as wind, hydro, and solar energy.

Green Energy Fund Launches In Bermuda

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News Americas, HAMILTON, Bermuda, Tues. Dec. 19, 2023: In a move to bolster the growth of Bermuda’s insurance and reinsurance sectors, the Irbisio Green Energy Fund has been established with a focus on investing in clean technology infrastructure.

With a primary objective of deploying $100 million of investments within the next two years, the fund aims to finance sustainable projects that contribute to achieving carbon neutrality while offering stable returns to its investors.

Located at Innovation House on Reid Street in Hamilton Bermuda, the fund is currently staffed by one person but plans to expand its team by hiring a lawyer and a financial analyst in the coming year. Operating discreetly over the past year, Irbisio intends to make investments across Europe, the Americas, and the Middle East.

Furthermore, the fund is open to investing in local Bermudian projects, with a particular emphasis on harnessing Bermuda’s renewable energy potential, which could lead to reduced consumer prices. The fund spokesperson also highlighted the possibility of Bermudian companies becoming national leaders and expanding to other island nations.

Irbisio’s investment criteria are based on three core factors: impact (such as CO2 reduction), reliability (ensured revenues through long-term contracts), and rapid construction time. Potential investment areas include renewable energy communities, recycling initiatives, and solar and energy storage solutions for residential and commercial sectors.

The Bermuda Business Development Agency (BDA) played a pivotal role in the creation of Irbisio, facilitating interactions with government regulators, legal counsel, and banks. David Hart, CEO of the BDA, emphasized that Irbisio’s establishment aligns with Bermuda’s ambition to become a global leader in the climate risk solutions sector.

Sergey Buchin, founder and CEO of Irbisio, stressed the significance of financial precision and deep technological understanding in the clean tech sector. The fund seeks to promote sustainable development by aligning with major technological trends and offering de-risked investment opportunities. Insights from the COP28 climate conference have influenced the fund’s financial model to enhance impact and returns.

Bermuda’s focus on sustainability, driven by its vulnerability to rising temperatures and the presence of many reinsurance companies, makes it an ideal location for Irbisio. The fund promises significant CO2 reduction and other environmental benefits while ensuring financial returns and adhering to rapid completion timelines.

Irbisio plans to invest in high-return projects with defined exit strategies, ensuring quick capital turnaround. The fund is supported by a substantial project pipeline, encompassing energy conservation, sustainable energy generation, and usage optimization. Irbisio also commits to following industry best practices and maintaining robust and accountable investment operations.

In a related development at COP28, Howden Group founder and CEO David Howden addressed the pressing issue of climate risk management and protection for vulnerable countries during his keynote address for the major event.

Fitch Ratings Revise Outlook Of This Caribbean Nation

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News Americas, NEW YORK, NY, Tues. Dec. 19, 2023: Fitch Ratings has affirmed the Dominican Republic’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB-‘ and revised the Outlook to Positive from Stable. The Positive Outlook reflects improved governance, robust growth prospects, and a trend towards higher per capita income. Dominican Republic’s governance indicators have shown improvement, and there are expectations of legislative changes to enhance the macro institutional framework. Growth, while decelerating in 2023, is expected to recover in 2024-2025. External liquidity metrics have improved, and foreign currency debt is decreasing.

The ratings are supported by strong economic growth, diversified exports, high per-capita GDP, and favorable governance scores. However, fiscal challenges, external liquidity buffers, and reliance on external bond market financing are constraints. The upcoming presidential and legislative elections in May 2024 are expected to maintain political stability. Stimulus measures have been enacted in response to slowing growth in 2023.

Inflation has fallen, enabling the central bank to cut the policy rate. The current account deficit is forecasted to decline, largely funded by robust FDI inflows. Tax advances have been used to fund higher capex. The government has increased local market borrowing. Fiscal reforms are under discussion, including a tax reform. The electricity sector remains a fiscal vulnerability.

ESG considerations include political stability, rule of law, institutional quality, control of corruption, human rights, and creditor rights. These factors have varying degrees of relevance to the rating and are assessed accordingly.

Rating Sensitivities:
Negative factors that could lead to a downgrade include a sharp deterioration in public finances, external vulnerability, or failure to achieve strong growth. Positive rating action could result from improved fiscal flexibility, higher growth, or further governance improvements.

Country Ceiling:
The Country Ceiling for the Dominican Republic is in line with the Long-Term Foreign-Currency IDR, indicating no material constraints on capital or exchange controls.

ESG Considerations:
Dominican Republic’s ESG Relevance Scores are ‘5[+]’ for Political Stability and Rights, ‘5’ for Rule of Law, Institutional & Regulatory Quality, and Control of Corruption, ‘4[+]’ for Human Rights and Political Freedoms, and ‘4’ for Creditor Rights. These factors are considered relevant to the rating and are key rating drivers with varying impact on the credit profile.