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Gov’t calls on private entities to learn about benefits of AFICA financing

Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) Executive Director, Christian Sobrino has opened a call to private-sector groups to visit the agency’s website to learn about the financing options for certain projects through the Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority.

AFICA, as the Authority is
known by its initials in Spanish, is available to financial entities,
developers, administrators, business owners and entrepreneurs interested in
infrastructure projects related to industrial, tourist, educational, medical
and environmental control facilities.

AAFAF’s initiative aims to
continue promoting Puerto Rico’s economic development by facilitating certain
local projects and capital investments at the same time, Sobrino said.

“AFICA allows private entities
to obtain competitive financing with no burden to Puerto Rico’s public credit,
since the government of Puerto Rico, its agencies, public corporations and
instrumentalities are not responsible for debt repayments,” Sobrino pointed
out.

“Financing a project through
AFICA represents a private investment opportunity with tangible benefits for
Puerto Rico,” he said.

AFICA provides an alternate
mechanism to finance industrial, commercial (including commercial real estate),
educational, environmental, agricultural, tourist and medical facilities projects
through issuances of tax-exempt bonds in the municipal bond markets of Puerto
Rico and the United States.

The repayment and the
collateral of said bonds comes from — and is the legal and contractual
responsibility of — the private entities that borrow the proceeds of AFICA bond
issue.

On Dec. 28, 2018, AFICA issued
$9 million in new bonds to finance the construction and development of a
library, a science center and other improvements for a private educational
entity.

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This story was written by our staff based on a press release.

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