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Investment Banking, Public Financing Paying Off For Oriental


July 8, 2004
Copyright © 2004 CARIBBEAN BUSINESS. All Rights Reserved.

Four-year-old division posted $8.06 billion in transactions in recently ended fiscal year Oriental Financial Group’s investment banking & public finance division, established in September 2000, has made a mark on the local investment community, generating over $8 billion in transactions in the last fiscal year (ended June 30).

"We started our operations four years ago trading around $1.7 billion. We surged to $8.06 billion in transactions for our fiscal year ended June 30, and our deal flow is still leading us," said Juan Alberto Albors de Lahongrais, managing director of public finance at Oriental.

From the beginning, Oriental appreciated the investment banking & public finance division’s potential to help the institution expand its client base while driving the diversification of its offerings. The division has been offering corporate financial-planning services and has become engaged as a financial adviser in structuring debt and equity capital-market issues and arranging refinancing for the private sector.

"We have accomplished quite a bit in a short time," said Albors de Lahongrais. "Since 2001, we have aimed to support clients’ needs or access to capital markets while adding value to the process."

Oriental’s alliance with Banc of America Securities LLC has helped to advance this goal in the area of underwriting and marketing public bond issues. Oriental has participated in numerous Puerto Rico government bond issues in the U.S. market as senior manager underwriting the issues. These include a $511 million bond issue by the Municipal Financing Agency in 2003, an $800 million issue of Tax Revenue Anticipation Notes (Trans) that same year, and a $663 million issue by the Housing Financing Authority this year.

This participation in the government bond syndicate has been a great part of the investment banking & public finance division’s success. To date, the division has been involved in more than $23 billion in public financing, including central-government obligations, and in many Industrial, Tourism, Educational, Medical & Environmental Control Facilities Financing Authority (Afica) issues exceeding a total of $300 million.

In 2003, Oriental’s investment banking & public finance division acted as manager or co-manager in more than $600 million in preferred stock and industrial development bond issues. Additionally, it has served a role in the issue of Qualified Zone Academy Bonds, an unusual financing instrument offered at 0% and made possible by a federal tax credit.

Oriental Financial Group

Investment Banking & Public Finance Division

Selected Transactions in Fiscal Years 2001-2004


Lead manager: $800 million

Commonwealth of P.R. (Trans**)

Co-senior*: $356 million

P.R. Public Finance Corp.

Co-manager: $176 million

P.R. Public Finance Corp.

Co-manager: $127 million

P.R. Housing Financing Agency


Co-senior: $720 million

P.R. Electric Power Authority

Co-manager*: $802 million

P.R. Public Buildings Authority

Co-manager: $100 million

P.R. Conservation Trust Fund

Co-manager*: $1.1 billion

P.R. Highway & Transportation Authority


Co-manager*: $273 million

P.R. Public Buildings Authority

Co-manager*: $103 million

Home Mortgage Revenue Bonds

Co-manager*: $1.02 billion

P.R. Public Improvement Refunding

Co-manager*: $1.67 billionP.R. Highway & Transportation Authority


Co-senior*: $727 million

Commonwealth of P.R.- GO Bonds***

Co-manager*: $1.17 billion

P.R. Public Buildings Authority

Sole placement agent*: $48 million

Qualified Zone Academy Bonds

Co-manager*: $628 million

P.R. Highway & Transportation Authority

*Transactions completed in cooperation with Banc of America Securities LLC.

**Tax Revenue Anticipation Notes

***General obligation bonds

Source: Oriental Financial Group

This Caribbean Business article appears courtesy of Casiano Communications.
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