IFLR 1000
The Guide to the World's Leading Financial Law Firms

The Dominican Republic's economy grew by an impressive 7.5% in 2010, driven primarily by the construction and the telecom industries. Tourism, the economy's most important sector, increased by 3.1% that year, affirming the country's position as the Caribbean's top tourist destination. The Dominican Republic also continued to be the Caribbean favourite for foreign investors, receiving 37% of the $5.8 billion invested in the region in 2009 and 2010.

Despite these positive statistics, attorneys report that a new cost-consciousness has come into play in the legal market. One partner observes: "Efficiency is one word out there affecting everybody - how deals are structured, new fees, new ways of addressing things. The good old days aren't coming back. We have to learn to live in the new environment."

That new environment is full of change, reflected by a new constitution which came into effect in January 2010 and a raft of legislation that has been passed or is pending, much of it designed to appeal to foreign investors and/or align the country with recommendations made by members of the World Bank.

In June 2011, Congress approved a new tax package that will replace revenue lost to the Dominican Republic through the implementation of the Central American Free Trade Agreement-Dominican Republic. The changes will include an increase from 25% to 29% for corporations and an additional 1% tax on corporate assets. Opponents say the increases will deter foreign investment.

Other important legislative changes include amendments to the country's Monetary and Financial Law, which are expected to pass this year and seek to modernise the legal sector by implementing internationally-accepted best practices.

Also relevant is The Law on Commercial Entities and Individual Enterprises, which was passed in 2008 but gave companies until December 2010 to become compliant by changing their bylaws or corporate status. The law will modernise local corporate legislation, making new corporate structures available to small- and medium-sized companies, and for the first time regulating processes such as M&A and consolidations.

The Law for the Development of the Mortgage Market and Trusts is also being implemented, introducing the use of trusts to create vehicles that will facilitate funding for the construction of low-income housing.

Other important legislation includes the Law for the Development of Renewable Energy Sources, which will provide government incentives for the use of renewable energy, bio-fuel, bio-diesel and ethanol over hydrocarbons.

Financing related to the Barrick Gold Mine in Pueblo Viejo, located northeast of the country's capital Santo Domingo, has been particularly active. First worked by the Spaniards in the 1500s, the mine was shut from 1999 to 2007, when it was reopened by the largest mining company in the world, the Canadian-based multinational Barrick Gold. At the time of writing, the $3 billion construction on the mine is still underway, with operations slated to begin in September 2011.

Headrick Rizik Alvarez & Fernández reported plenty of staff changes over the last year - six associates left and were replaced with six others, with three promoted from the position of senior paralegal in the firm. "They're very good, progressive and have been dealing with certain important trades," notes one competitor.

Clients are happy with the firm: "The lawyers are very responsive, very skilled; not only in Dominican law but in understanding international law and the needs of international clients," says one. A 15-year banking client mentions the "timely response and adequate advice." Another client refers to advice received by the firm as "timely and effective".

In a deal that closed in June 2010, Headrick acted as local counsel to a group of primarily US and Canadian multilateral banks with regard to a $1 billion bank and credit-agency debt financing for construction related to the Pueblo Viejo gold mine. Located near the provincial capital of Cotuí, northeast of Santo Domingo. The mine, which was once the largest in the Western hemisphere, is administered by the Canadian Barrick Gold, which reopened it in 2007.

In a deal that closed in January 2011, Partner Mary Fernández and Senior Associate Claudia Roca advised BNP Paribas on its $54 million loan to the Dominican government to finance the construction of a four-lane highway, the Autopista del Coral. Slated for completion in 2012, the highway is considered one of the country's most significant infrastructure projects, providing access from Santo Domingo to the country's busiest tourist locations.

Pellerano & Herrera gets high marks from competitors and glowing praise from clients. . Over the past year, the firm promoted 14 paralegals to associates to address an increase in complex cases. Partner Hipolito Herrera left the firm in 2010.

One client notes that Pellerano & Herrera benefits from a significant number of North American-trained lawyers who take local sensitivities into account when giving advice: "They help explain, guide and translate a transaction to make it successful." One peer says the firm's lawyers are, "very competent and good professionals". Another notes succinctly, "They have their finger on the pulse."

In one notable transaction, partner Luis Rafael Pellerano advised the Canadian-based Barrick Gold, the largest gold mining company in the world, on $1.04 billion in financing for the Pueblo Viejo gold mine. The firm also advised Barrick on a related special lease agreement with the government giving it mining rights. The Canadian company is the single largest foreign investor in the Dominican Republic's history.

In a refinancing deal that closed in December 2010, Partner Marielle Garrigó advised Compañía de Electricidad de San Pedro de Macorís (CESPM), a subsidiary of the largest energy company in the country, Cogentirx, on its $150 million loan from the Interamerican Development Bank.

OMG has offices in Santo Domingo, Santiago and Punta Cana. With 40 lawyers, it is one of the Dominican Republic's largest law firms and the country's exclusive member to the Legus international network of law firms.

According to the firm's clients, the philosophy is effective: "They're absolutely our business partners," one says. "We're implementing some very avant garde fund structures in terms of private equity funds; many are being created from scratch based on US models and they've created a very good end product in terms of the incorporations of the funds."

Another client adds, that within the relevant regulatory framework: "They look for the space that allows us to operate the way we want to and have found ways to help us save money and control risk." Another client mentions: "They're really available but sometimes their workload gets in the way of getting things to us as quickly as we'd like. "

In a $230 million deal that closed in March 2011, OMG advised the German DEG Bank, a member of KfW Banking Group, one of Europe's largest financial development institutions, and the International Finance Corporation (IFC), in financings related to the expansion of the Caucedo Marine Port. The expansion of the marine terminal, located 25km from Santo Domingo involved prominent local sponsors as well as DP World, a major operator of marine ports worldwide, which operates the port. The development will increase the port's capacity by 25%, making a vital contribution to the area's economy.

Squire Sanders & Dempsey Peña Prieto Gamundi has built its reputation primarily on cross-border M&A deals and financings. Its impressive roster of clients include: Banca Promerica, Caterpillar Financial Services, Caterpillar Credito, PriceSmart Dominicana, Major League Baseball, Delta Air Lines and US Airways.

In a complex, multi-jurisdictional deal involving $650 million of debt, Partners Pedro Gamundi and Awilda Alcántara Bourdier led a team of attorneys in the restructuring of the country's second largest telecom carrier, Tricom. It was the first time a Dominican company made a straight US Chapter 11 filing and also the first time a Dominican company's restructuring plan was approved and implemented after undergoing a full restructuring process in the US.

In a deal that closed in May 2010, partner Alejandro Peña Prieto and senior associate Rhina Martinez acted as local counsel to Citigroup Global Markets and Barclays Capital as the joint book running managers in the issuance of $750 million of sovereign bonds by the Dominican Republic, due 2021. It was the country's first international dollar offering in more than three years, and more dramatically, the largest single sovereign bond offering in the Dominican Republic's history,

Russin Vecchi & Heredia Bonetti is the Dominican affiliate of the global law firm, Russin Vecchi, and the Dominican representative to the Meritas network of law firms which spans 66 countries. The firm prides itself on its work to attract foreign investment into the country, and to that end maintains a staff of attorneys who can provide services in Spanish, English, Portuguese, Italian, Russian and Serbo-Croatian.

The firm is currently advising Textrón Financial, which provides financing programs for products produced by its parent company, Textrón, on services related to several local golf resorts. Other work includes advising an Australian Bank on work related to a major mining project financing, the Las Lagunas Project in the Dominican Republic.

The 95-year-old firm Troncoso y Cáceres reports a variety of corporate and finance activity, most led by name partner Ana Isabel Cáceres.

Cáceres provided legal assistance to the Sol Group, a leading petroleum company, on its purchase of Shell's retail, commercial and lubricant businesses in the Dominican Republic. It also advised Sol Petroleum on a loan and related security documents for $16.5 million from Scotiabank, for the purpose of acquiring all shares of Shell Company Dominica, which is owned by the Shell Company.