Citigroup appointed by Puerto Rico fiscal board to lead power utility restructuring
SAN JUAN – The Financial Oversight and Management Board for Puerto Rico said Tuesday that it amended its engagement with financial adviser Citigroup Global Markets Inc., appointing the bank as lead investment adviser for the restructuring and privatization of the Puerto Rico Electric Power Authority (Prepa).
Citi will advise the board on Prepa’s privatization, as well as the restructuring of the public utility’s debt in accordance with the Title III proceedings underway in federal bankruptcy court.
The global financial institution “will take the lead in identifying private sector solutions that fulfill the vision laid out by Governor [Ricardo] Rosselló: a long-term concession for PREPA’s transmission and distribution and privatization of the utility’s generation assets. Ultimately, these elements will be a part of the Plan of Adjustment filed in the Title III case,” the board’s release reads.
The board adds that it has “long said that a full operational and financial transformation of PREPA — including private investment — is necessary to deliver the resilient, reliable, and cost-effective power system that Puerto Rico needs for its economic recovery.”
The board said it expects to certify Prepa’s revised fiscal plan by the end of February.