Puerto Rico debt is off to its best annual start since 1999 as it wraps up a $3.5 billion offering that will address the island’s funding needs and ease credit concern across the municipal landscape.
The $3.7 trillion market’s biggest sale ever of junk-rated securities shows that the U.S. commonwealth can borrow through capital markets even after losing its investment grades last month. The financing is coming at a price. The issuance is set to yield about 8.73 percent on debt maturing in July 2035, data compiled by Bloomberg show. For top earners, the taxable-equivalent yield eclipses that on similarly graded company debt.