AFICA issues up to $57.4M in new bonds for Grupo Auxilio Mutuo
The Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) and the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority (AFICA) announced the issuance of up to $57.4 million in new AFICA bonds to refinance existing debt and finance the expansion of services, as well as improvements to several components of Grupo Auxilio Mutuo.
“This is the first public issuance of AFICA bonds since 2011, which reflects that Puerto Rico continues regaining the trust of the investment sector that is willing to invest capital in projects of this nature. This issuance will allow Grupo Auxilio Mutuo to make improvements to the medical facilities of the institution and to purchase equipment,” AAFAF Executive Director Omar Marrero said.
This bond issuance received a BBB- investment grade rating from Standard and Poor’s, which is a positive indicator not only for Grupo Auxilio Mutuo, but also for private sector financing in Puerto Rico, said AFICA Executive Director Alfredo Guerra.
Neither the government of Puerto Rico nor any of its instrumentalities are guaranteeing the new AFICA bonds, Guerra said.
Grupo Auxilio Mutuo will be responsible for making the principal and interest payments.
“We’re very excited about this transaction that will greatly benefit Puerto Rico and improve the quality of life for our patients,” said Enrique Fierres, chairman of the Board of Trustees of the Sociedad Española de Auxilio Mutuo y Beneficencia de Puerto Rico, the parent company of Grupo Auxilio Mutuo, said.
Meanwhile, Angel Cocero, chairman of the Board of Directors of Hospital Auxilio Mutuo said, “part of our commitment is to stay at the forefront of the hospital industry with highly technological equipment and better facilities, so this issuance of AFICA bonds keeps us in that direction.”
AFICA was created by Law No. 121 of June 27, 1977, as amended, to issue debt and loan the proceeds from the sale to provide financing to eligible projects. It’s purpose is to promote commercial, industrial, tourist, environmental management, medical and educational development