San Juan Mayor Miguel A. Romero Lugo announced Thursday the closing of a historic general obligation bond issuance by the Municipality of San Juan, a transaction of approximately $122 million. According to the municipality, the offering drew expressions of interest totaling nearly $2.2 billion—almost 18 times the amount of bonds offered—with 53 investment firms submitting orders at a ratio of $18 for every $1 available.
This strong demand helped lower borrowing costs, with the total financing cost around 4.99%, including debt placement costs. RBC Capital Markets managed the sale. Romero Lugo called it a milestone, saying San Juan entered the bond market directly for the first time with a response exceeding expectations, reflecting confidence in the municipality's credit and ability to meet its obligations.
The deal marks the first direct access by a Puerto Rico municipality to the U.S. municipal bond market in just over a decade, and the first time since the federal PROMESA law that a Puerto Rican issuer has accessed capital markets with an investment-grade rating. About $9.6 million of the issuance were taxable bonds. Proceeds will fund the Municipal Capital Improvement Program, financing long-life infrastructure projects in health, education, social development, recreation, sports, and municipal facilities, including upgrades to the Municipal Hospital's operating and emergency rooms, educational projects, and sidewalk reconstruction on Ponce de León Avenue.