Puerto Rico Plans To Buy Back Bonds In Move To Refinance Its Debt

The Government Development Bank of Puerto Rico announced Friday that it will soon begin buying back outstanding municipal bonds in a move to refinance its debt, according to a notice published on Electronic Municipal Market Access Friday. Some purchases will be privately negotiated, while others will be made in the open market. The development bank or other government entities will offer cash, new securities, or sometimes a combination of both, depending on the availability of attractive refinancing options. sometimes at values below par. The purchases may negatively impact the price of the remaining securities in circulation. Puerto Rico Gov. Alejandro Garc�a Padilla said two weeks ago that the island commonwealth would be unable to pay down its substantial public debt. Citigroup Inc. is authorized to make purchases on behalf of the island.