GDB: Investors grab $410M in bonds
The transaction represents some $6.6 million in savings at the public corporation, GDB President Juan Carlos Batlle said.
The GDB fielded $543.7 million in orders during the three-hour sale window — $422 million from retail (individual) investors and $122 million from institutional investors. That topped the available total bonds for sale by 30 percent.
“The big demand for the bonds is another strong show of support for the Fortuńo administration by bond holders,” Batlle said. “It is also clear evidence that refutes recent allegations by some politicians that Puerto Rico has been shut out of the bond market or that we are paying higher rates than in 2009.”
The shortest maturing bonds are due in 2015 and carry a 3.10 percent rate. The longest maturing bonds are due in 2013 at a rate of 5.35 percent. The average transaction cost was 4.75 percent. A similar transaction in late 2008 would have cost more than 6.5 percent, according to the GDB.
“The numbers speak for themselves,” Batlle said.
“The issue of Puerto Rico’s credit and access to the capital markets is a serious one and shouldn’t be used by politicians to try to confuse the public with unfounded statements,” he said. “One has to be open and honest when making comments that can impact the reputation and good name of Puerto Rico on the capital markets.”