RBC Capital Markets purchased a $246 million bond anticipation note from Puerto Rico Monday, supported by a new oil tax increase.
The BAN from the Puerto Rico Infrastructure and Finance Authority replaces a Puerto Rico Highways and Transportation BAN, now being redeemed and retired, that RBC bought in August 2013, according to a spokesman for the Government Development Bank for Puerto Rico.
Puerto Rico Gov. Alejandro García Padilla signed the oil tax increase into law on Friday. The new notes are secured by the oil tax increase, the spokesman said. On Sunday the tax on imported oil rose to $15.50 a barrel from $9.25.
The new BANs are also guaranteed by the full faith and credit of the Commonwealth.
According to the Electronic Municipal Market Access web site, the BANS carry an 8.25% interest rate and mature on May 1, 2017. The notes have their first call date on April 6 and can be called any time thereafter until maturity on the first of each month.
Reuters has reported that a PRIFA bond of as much as $2.95 billion has been delayed until late May.
The PRIFA note is "separate and apart from a potential long-term PRIFA bond issuance," the GDB spokesman said. The PRIFA bond is primarily to pay off debt owed by the PRHTA to the GDB. It will also be supported by the oil tax rise.
