Thursday, June 20, 2019

Puerto Rico’s Afica issues bonds for first time in over a decade

By on January 8, 2019

SAN JUAN – Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) Executive Director Christian Sobrino Vega announced Tuesday that, on Dec. 28, the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority (Afica by its Spanish acronym) issued $9 million in new Afica bonds to finance the construction and development of a library, a science center and other improvements for Baldwin School of Puerto Rico.

Afica was created by Act 121 of 1977, as amended, to issue revenue bonds and loan the proceeds from their sale to finance projects for economic development, health, education, welfare and safety.

Sobrino Vega pointed out that the new bonds are “not guaranteed by the Commonwealth of Puerto Rico nor by any instrumentality of the Government of Puerto Rico, and principal and interest payments for said bonds will be made solely” by the educational institution.

“This is the first AFICA bond issue since December 2012 and the first AFICA issue for a new investment since the early 2000s. This reflects that Puerto Rico continues to recover the trust of the investment sector as it is willing to invest capital on educational projects in the Island. Also, we are very pleased with the fact that this bond issue will benefit a nonprofit entity that promotes academic excellence,” stated Sobrino, who is also president of Afica.

Sobrino explained that the bonds will be used to build and renovate the Student Center for Innovation, which includes laboratories, technology and other learning areas for students. In addition, a library will be built.

Afica does not receive credit rating since it acts as a conduit issuer for the private entities.

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