Puerto Rico wants to return to the market for another $2 billion

By Cate Long
March 21, 2014

I talked with Erin Ade of RT about Detroit and Puerto Rico. The interview starts at 3:40.

Meanwhile, on Thursday Caribbean Business reported that Puerto Rico intends to return soon to the market to borrow another $2 billion.

The government is planning a $1.5 billion deal through its Sales Tax Financing Corp (Cofina by its Spanish acronym) and a $500 million deal through its new Municipal Financing Corp (Cofim by its Spanish acronym) financing vehicle, according to Caribbean Business sources.

Government Development Bank (GDB) interim President José Pagán told CB last month that Cofina and Cofim deals could be on the horizon late this year or in early 2015, but sources now say that the timetable has moved up because of the successful $3.5 billion general-obligation (GO) deal that was undertaken last week.

We continue to await the reporting of Puerto Rico’s economic data for January. Stay tuned.

3 comments

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Excellent, because it spreads the usual gloom and doom. Otherwise, it would not be a must-read, would it?

Posted by CraigL | Report as abusive

It would appear that PR has an unlimited appetite for new debt, and that the muni market has an unlimited appetite for PR debt–a marriage made in heaven. Then, when PR restructures, the bondholders will contend that they were misled! Nobody told us this was a bad credit.

Posted by nixonfan | Report as abusive