Hearing slated for April 26 on proposed $23M AFICA bond issue
The Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, known as AFICA for its initials in Spanish, is planning to issue $23 million in debt to finance a project planned by the Inter American University of Puerto Rico.
The upcoming public hearing that will take place at the Fiscal Agency and Financial Advisory Authority’s, or AAFAF, headquarters in San Juan, will review the planned emission of AFICA’s Higher Education Revenue Bonds, Series 2019 — also known as the Inter American University of Puerto Rico, Series 2019 Project.
The bonds are being issued in accordance with Act 121 of 1977, which created the AFICA entity.
The proceeds of the bond emission would pay all or a portion of the Inter American University’s plan to build and equip a two-story student dorm complex, and related facilities. The complex will have 17,500 square feet of commercial space, open spaces and some 282 parking spaces and related educational facilities of the college on campus.
If the emission goes through it will not be considered “debt, liability or guaranteed by the Commonwealth of Puerto Rico,” and will be payable “solely from certain revenues received by the issuer under a loan agreement with the borrower,” according to the notice.
The public hearing is open to interested parties who may participate personally or through representatives, who may present oral or written comments, which may be submitted on or before 4 p.m. on April 25.
The repayment process is not clear. What does it mean that the debt will be paid by the issuer from certain revenues received by him? What are those certain revenues? Where do they come from? Whatdoes it mean that it will not be considered debt? What is it then? Income?!! So, the UIA won’t have to repay? Lots of word-twisting here that wasn’t thoroughly explored.