President Abinader rings the bell to officially open the placement of Banco Promerica’s first public offering of preferred shares

• The president highlighted that this second share issue in less than two months makes this sector of the country the region’s leader so far this year in Initial Public Offerings of Shares, in challenging global times.

Santo Domingo, 10 October 2023. – President Luis Abinader on Tuesday performed the symbolic bell ringing that opens the placement of Banco Promerica’s public offering of preferred shares. Following approval by the Superintendency of the Securities Market (SIMV), the bank becomes the first banking institution to issue shares through the Dominican Republic Stock Exchange (BVRD).

Ringing the bell in the Las Cariátides Hall of the National Palace, President Abinader welcomed this milestone with Grupo Financiero Promerica, which has chosen to invest in the country, which he said highlights the favourable business climate, the stability of the banking system and the dynamism of the country’s securities market.

“It’s not us saying this; foreign investors say it when they bring their money, credit rating agencies and international banks say it in all their reports, and all international institutions say it, such as the International Monetary Fund, which in its 2023 assessment report highlighted that the banking sector is well capitalised, solvent, liquid and profitable,” said Abinader.

The head of state highlighted that this new achievement comes less than two months after the successful first public share offering, recently celebrated in the same hall, which “makes us the region’s leader so far this year in Initial Public Offerings of Shares, in global times that Central Bank governor Héctor Valdez Albizu has described as complex and turbulent.”

In other countries in the region, he noted, many companies have delisted their shares, while in our country companies are being encouraged to offer their shares to the public and are finding good demand from investors.

“It is clear that success is not improvised. It is planned and executed through public policy and the coordinated work carried out with the enactment of Law 163-21 on Promoting the Securities Market, through which we removed obstacles that for decades had hindered the issuance of shares in our securities market,” said Abinader.

The president explained that with this issue of preferred shares, Banco Promerica is innovating with a new mechanism for building share capital, the highest-quality capital for banks under international standards.

“This money will allow Banco Promerica to keep lending to businesses, MSMEs, households and all Dominicans. This flow of money will make it easier and quicker to finance our strong development climate,” he said.

The president recalled that in his last remarks on this subject he highlighted the institutions that worked on the project, and added that being here again shows that when the private and public sectors work together, drawing on the talent and determination of public servants, goals that had never been reached before can be achieved, and above all results can be delivered for the benefit of the country and the financial system.

A robust banking system and a flourishing capital market

“We cannot forget that all this has been possible because we have fostered and maintained the nation’s confidence and financial and economic stability, with a robust banking system and a capital market that is flourishing before our eyes, well supervised by highly specialised, competent and honest experts, and with responsible private participants committed to good risk management and the nation’s well-being,” said Abinader.

In that sense, he said, it is something we should all value and work to keep going, because it underpins the economy and development.

“This bell will ring out in this Palace, but also in the heart of the republic, because it is a bell of hope for a better future. We congratulate Promerica on this great milestone,” concluded President Abinader.

Working together for efficient processes

The Superintendent of the Securities Market, Ernesto Bournigal Read, said this was the result of joint work with the Superintendency of Banks and its entire team to approve this issue of Banco Promerica preferred shares on the securities market in a record response time of one month and twenty days.

He said Promerica’s choice of the Dominican Republic for its second issue of preferred shares was not by chance, but the result of the economic growth and strength the country has shown, and thanks to the securities market’s contribution.

Both superintendencies, he said, carefully verified that Banco Promerica met the requirements of both regulators regarding corporate governance, anti-money laundering, disclosure, transparency and other rules.

“At the Superintendency of the Securities Market we see a securities market moving forward in unison, in which all players and participants are committed to promoting and developing the market, which over these 20 years has contributed directly and indirectly to investors, business people and the production of all kinds of goods and services,” stressed Bournigal Read.

Highly favourable levels of social peace, coexistence, legal certainty and macroeconomic and political stability

Meanwhile, the executive president of Banco Promerica Dominican Republic, Carlos Julio Camilo, said that despite all the challenges typical of developing countries, the Dominican Republic today enjoys levels of social peace, coexistence, legal certainty and macroeconomic and political stability that are highly favourable compared with the rest of Latin America, and that this represents an enormous opportunity for the capital market to develop rapidly and generate prosperity for all.

“Our country’s virtues and strengths make it the main focus for Grupo Promerica in the near future. We will work tirelessly, hand in hand with all players in our society, not only to keep investing in the Dominican Republic but also to generate ideas, innovations and synergies that allow us to build a better nation together,” said Camilo.

He added: “Today we are not only celebrating the first issue of preferred shares in the Dominican Republic, but also the shared vision of a country with a dynamic, constantly growing and fairer economy.”

Likewise, the executive vice president of BVRD, Elianne Vílchez Abreu, said this first public offering of preferred shares, and the first by a financial institution, shows the dynamism of our securities market, which in the last 3 months has seen two companies open their capital to give all Dominicans the opportunity to invest. “The Dominican securities market is responding.”

Banco Promerica, which has achieved excellent results in its main financial indicators, with compound annual growth of 31% in assets, 38% in its loan portfolio and profitability above 20%, has consistently delivered value propositions aligned with the needs of the different business segments in the market.

The structuring and placement agent for this issue is Parval Puesto de Bolsa. Acting as distribution agents are Alpha Inversiones, Excel Puesto de Bolsa, Inversiones Santa Cruz, CCI Puesto de Bolsa, United Capital, Vertex Valores and MPB Multivalores Puesto de Bolsa, which will place and trade these shares through the platform run by the Dominican Republic Stock Exchange.

Attending the event were the general manager of the Central Bank and president of the National Securities Market Council, Ervin Novas Bello; the Superintendents of Pensions, Francisco Torres Díaz, and of Banks, Alejandro Fernández; the president and general director of PARVAL Puesto de Bolsa, Francina Marte de Tiburcio; the Minister of Housing and Buildings, Carlos Bonilla; and the Vice Minister for Administration and Finance of the Presidency, Igor Rodríguez Durán. 

Representing Grupo Promerica were Ramiro Ortiz Mayorga, chairman of the Board of Directors of Grupo Promerica, and Francisco Martínez, vice chairman of the Board of Directors of Banco Promerica Dominican Republic, among other Grupo Promerica executives.

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About Banco Promerica 

Headquartered in Santo Domingo, Banco Promerica is a multiple bank with more than 23 years of local presence, focusing on personal customers, small and medium-sized businesses, corporate and institutional clients, and the payment methods business. Banco Promerica is a member of Grupo Promerica (through the holding company Promerica Financial Corporation), made up of nine banks operating in Central America, Ecuador, the Cayman Islands and the Dominican Republic. 

Through the financial services it offers, Grupo Promerica constantly contributes to financial inclusion and to the economic progress of the societies and communities it serves. 

About Grupo Promerica 

Grupo Promerica is one of the most important regional financial groups, with total assets of around US$20.1 billion and equity of around US$1.7 billion, more than 3.1 million customers and a customer service network of more than 780 branches and agencies and more than 1,187 of its own ATMs. 

Through the financial services it offers, Grupo Promerica constantly contributes to financial inclusion and to the economic progress of the societies and communities it serves. 

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