PUBLIC SECTOR DEBT COMPOSITION Public Debt Office Ministry of Finance October 2019
EVOLUTION OF THE NFPS DEBT As of August 31st, 2019, the NFPS debt (including debt with the Central Bank) amounted US$34,399.1 million, representing the 39.1% of GDP projected for the year. NFPS Debt Evolution 2013- August 2019 (% GDP) 39.1% 37.0% 37.6% 36.9% 35.4% 35.3% 33.9% 3.0% 3.2% 3.6% 5.0% 3.7% 4.5% 4.1% 9.8% 9.2% 9.8% 7.8% 6.4% 8.4% 7.0% 26.3% 25.2% 24.2% 24.4% 23.5% 22.8% 23.2% 2013 2014 2015 2016 2017 2018 Aug-19 External Debt Internal Debt Intragovernmental Internal Debt Sources: Public Credit General Office 2 Note: Preliminary figures, subject to rectification.
DEBT COMPOSITION BY CREDITOR Of the total NFPS debt of US$ US$33,399.1 million, US$23,140.3 million is external debt, US$8,647.4 million is domestic and US$2,611.5 million, intragovernmental debt. On the other hand, the debt of the NFPS is composed of 30% and 48% of debt instruments in domestic and external bonds, respectively, 13% is contracted with multilateral organizations and 5% with bilateral institutions, to name the main ones. Composition By Creditor Type NFPS Debt Composition Commercial Banks and Intragovernmental Suppliers, US$846.1, 2.5% Bilateral , Debt, US$2,611.5, US$1,887.0, 7.6% Domestic 5.5% Bonds, Multilaterals, US$7,896.4, US$4,614.6, 23.0% 13.4% Domestic Debt, US$8,647.4, 25.1% CB Recap Bonds, US$2,586.2, External Debt , 7.5% External Bonds US$23,140.3, 48.2% 67.3% Sources: Public Credit General Office 3 Note: Preliminary figures, subject to rectification.
DEBT MANAGEMENT STRATEGY Development of the Domestic Capital Market • Prioritization of fixed rate instruments in local Target Indicators Dec-18 Aug-19 currency. Reduction of exchange risk. 2020 Exchange Rate Risk • Creation of more liquid benchmark series with the % FX Debt 77% ± 3% 74.8% 71.2% use of reclosures Diversification of Financing Sources Refinancing Risk ≤12% % Short Term Debt 8.8% 5.8% • Access to different markets. ATM Domestic Debt 7 ± 1 years 7.0 7.1 • Capital increase in multilateral organizations Interest Rate Risk Extending Domestic and International Curves % of debt that refixes 17% ± 3% 20.7% 17.3% • Increase the average maturity of the portfolio. Use rates within a year of series to 10 and 15 years. 1 / The scope of the Debt Management Strategy does not include the bonds issued by the Central Government for the recapitalization of the Central Bank, since these instruments are not available for the new financing. These indicators therefore exclude such instruments. Bullet and Custom Repayment Profiles • Smooth the profile of maturity. • Modification schedule of repayment multilateral loans Liability Management Operations • Reduce debt service. • Re-structuring of the maturity profile
DEBT STRUCTURE: TYPE OF INTEREST Interest rate risk has been reduced, with more than 88% of total NFPS debt contracted at a fixed rates. Public Debt by Interest Type 11.4% 13.5% 12.8% 18.7% 20.2% 20.2% 25.9% 88.6% 86.5% 87.2% 81.3% 79.8% 79.8% 74.1% 2013 2014 2015 2016 2017 2018 Aug-19 Fixed Rate Variable Rate Sources: Public Credit General Office Note: Preliminary figures, subject to rectification
DEBT STRUCTURE: CURRENCY TYPE As a result of the implementation of the Debt Management Strategy, the proportion of debt in local currency has increased , thus contributing to the reduction of risk in international financial markets and unexpected movements in the exchange rate. Public Debt by Currency 16.1% 16.8% 19.0% 22.5% 25.2% 25.2% 28.8% 83.9% 83.2% 81.0% 77.5% 74.8% 74.8% 71.2% 2013 2014 2015 2016 2017 2018 Aug-19 Foreign Currency Local Currency Sources: Public Credit General Office Note: Preliminary figures, subject to rectification
DEBT STRUCTURE: MATURITY Given the prioritization of medium-long-term financing, it has been possible to extend the average term in which the NFPS debt repays, which as April 30th, 2019 is around 9.6 years. Average Time To Maturity (years) 13.0 11.9 11.0 10.6 9.0 8.2 7.1 7.0 7.4 5.0 5.2 3.0 2013 2014 2015 2016 2017 2018 Aug-19 External Debt Internal Debt NFPS Debt (Excl. Recap) Sources: Public Credit General Office Note: Preliminary figures, subject to rectification
DEBT PROFILE And to reduce of debt repayments at the short and medium term … 32% maturing in ≤ 5 years Sources: Public Credit General Office Note: Preliminary figures, subject to rectification
Capital Markets 31
DOMESTIC AUCTION PROGRAM March 2009 June 2015 Multi-price Market Makers Single Price auctions. Program Auctions. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • Start • Start • Terms of • Terms of • Terms of • Terms of • Terms of • Term of • Term of 10 • Retap Auctions 3, 7 and 7 and 10 5, 10 and 5, 10 and 7, 10 and 7,10 and and 15 23’s, 27’s, Auctions Program. 10 years. years. 15 years.. 15 years. 15 years. 15 years. years and 32’s Program. re- • Maturities: • New 10 openings 3, 5, 7 and yrs 10 years. Lowest Rates First Issuance at 7 First issuance at and 10 Years 15 years 2019: 5, 9, and 15 years RD$70,060.2 million 10
DOMESTIC CAPITAL MARKET Domestic Bonds Issuances Average Maturity and Yield (million DOP) 11.4 11.3 10.6 10.5 12.0 10.2 18.0% 10.0 15.9% 9.5 16.0% 85,000 10.0 15.6% 14.0% 73,000 70,060 9.0 13.9% 14.0% 8.0 12.0% 13.1% 7.9 10.0% 6.8 10.9% 6.0 10.8% 10.5% 10.3% 10.3% 10.0% 8.0% 27,252 4.0 6.0% 4.0% 2.9 2.0 2.0% 0.0 0.0% Madurez (años) Rendimiento Domestic Bonds Holders Pension Funds 38.1% Non Residents Commercial Banks 19.6% 20.6% 70,000.00 25.0% Non-residents 13.0% 60,000.00 13.0% 17.6% 20.0% 15.0% 15.6% 50,000.00 Individuals 16.1% 7.2% 18.5% 15.0% 40,000.00 Broker-dealer 5.3% 30,000.00 10.0% Others 4.9% 20,000.00 5.0% Savings and Loan Associations 4.7% 10,000.00 - 0.0% Insurance Companies 4.4% 2013 2014 2015 2016 2017 2018 2019 11 Private Companies 2.7% Amount % Total
INTERNATIONAL ISSUANCES • 10 Years Bonds 30 Years US$ 500.0 MM @ 6.95% First Issue in @ 5.875% Issue @ • 10 Years Bonds Pre-financing: US$ 250.0 DOP, @ 8.9% @ 6.60%. 6.85%. @ 7.5%. MM @ 6.875% 2010 2011 2012 2013 2016 2017 2018 2014 2015 • 10 Years • Total • Reopening • Pre- • 10 year • Issuance and • Issuance and • 10 year • DOP 40,000 Amount: of series to funded in Bonds. bond @ reopening of reopening of bonds @ mm - 5 year US $ 750 10 years 2011 (US $ 6.875% • Total 30-year bonds to 10 5.95% and bonds mm. 250 mm). amount: bonds. and 30 years @ 5.10% • Total • Total • US$1,000 US $ 1,500 Amount: Amount: • Total mm – 30yrs • Total Amount: • Total mm. US $ 750 US $ 1,500 Amount: US US $ 1,500 Amount: US $ • US$1,300 mm. mm $ 1,700 mm. 3,500 mm. mm – 10yrs First Issue at 10 Years Bonds 30 años @ 5.5% @7.45%. 2019: DOP issuance, 7 years @9.75%; 30 years USD bond at the lowest rate@6.492% 12
FINANCING 2019 13
FINANCING 2019 Figures in million and as percentage of GDP BUDGET 2019 PROPOSED MODIFIED BUDGET 2019 FINANCING SOURCES RD$ US$ %GDP RD$ US$ %GDP 231,880.0 4,443.85 5.0% 254,524.1 4,877.8 5.5% External Financing 159,061.7 3,048.3 3.5% 168,713.6 3,233.3 3.6% Multilaterals, Bilaterals, Commercial Banks (Investment 18,130.0 347.5 0.4% 14,480.0 277.5 0.3% Projects) Global Bonds 117,405.0 2,250.0 2.6% 130,450.0 2,500.0 2.8% Budget Support 23,526.7 450.9 0.5% 23,783.6 455.8 0.5% Bilaterals 521.8 10.0 0.0% 521.8 10.0 0.0% Multilaterals 23,004.9 440.9 0.5% 23,261.8 445.8 0.5% Domestic Financing 72,818.4 1,395.5 1.6% 85,810.5 1,644.5 1.8% Domestic Bonds 72,818.4 1,395.5 1.6% 85,810.5 1,644.5 1.8% Proposed Modifed Budget o Execution of 79.5% of the total financing for 2019. o External Financing: 76% o Domestic Financing: 82% o Local currency financing: 47% of total Sources: Public Credit General Office 14 Note: Preliminary figures, subject to rectification
FINANCING EXECUTION 2019 Figures in million and as percentage of GDP PROPOSED MODIFIED BUDGET EXECUTION 2019 2019 FINANCING SOURCES RD$ US$ %GDP RD$ US$ % GDP 254,524.1 4,877.8 5.5% 202,439.6 4,010.9 5.0% External Financing 168,713.6 3,233.3 3.6% 132,379.4 2,620.5 3.3% 277.5 0.3% 5,318.5 104.7 0.1% Multilaterals, Bilaterals, Commercial 14,480.0 Banks (Investment Projects) Global Bonds 130,450.0 2,500.0 2.8% 126,262.8 2,500.0 3.1% Budget Support 23,783.6 455.8 0.5% 798.1 15.8 0.0% Bilaterals 521.8 10.0 0.0% 0.6 0.0 0.0% Multilaterals 23,261.8 445.8 0.5% 797.5 15.8 0.0% Domestic Financing 85,810.5 1,644.5 1.8% 70,060.2 1,390.4 1.7% Budget 2019 Proposed Modifed Budget o Execution of 87.3% of the total o Execution of 79.5% of the total financing financing for 2019. for 2019. o External Financing: 86% o External Financing: 76% o Domestic Financing: 96% o Domestic Financing: 82% o Local currency financing: 60% of total o Local currency financing: 47% of total Sources: Public Credit General Office 15 Note: Preliminary figures, subject to rectification
Recommend
More recommend
