San Juan, Puerto Rico, to make standalone muni market debut

By: Robert Slavin

Excerpt from the article:

(July 30, 2026) San Juan gets about $100 million a year in CAE property tax revenue each year. The Banco Popular loan will absorb roughly 25% of that from 2027 to 2032. The loan culminates in a $149 million balloon maturity in July 1, 2033, according to the preliminary official statement. 

The 2033 term payment "is deferring financial pressure into the future," Mousseau said. "Certainly, the city believes they will be able to refinance this. For now, it's an incremental risk because they are not amortizing the debt over the next seven years."

An enthusiastic purchaser of the bond will be PRMF Fund LLC, which was formed about three years ago to purchase bonds from smaller or medium-sized Puerto Rico cities. When Puerto Rico's largest city, San Juan, decided to sell bonds, the fund decided to buy, said Francisco De Armas, co-founder and managing member of PRMF. 

Click here to read the full article on the Bond Buyer website. 

John R. Mousseau, CFA
Chief Investment Officer
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