The Puerto Rico Authority of Financing for Industrial, Tourist, Educational, Medical and Environmental Control Facilities (AFICA by its Spanish acronym) was created in 1977.
The GDB affiliate agency provides and alternate method to finance capital investment in Puerto Rico for public and private sector projects helping boost the island’s economic development.
AFICA provides financing for these projects, usually at a lower cost than those offered by the private sector. AFICA directs financing for eligible projects through tax-free bonds emission.
The money generated from the bonds is loaned to AFICA through a loan contract that is issued to the entity in charge of developing the financed project. AFICA benefits investors as they obtain tax-free income and it also helps borrowers as they obtain financing at lower interest rates than those offered by the private sector.
Initially, AFICA only financed industrial projects, mainly related to environmental pollution control. Currently, after an amendment was made to AFICA by-laws, the agency can also finance medical facilities and educational projects. In addition, after changes were made to AFICA’s Charter Law, the agency can also help finance tourist facilities and industrial projects such as buildings for offices and other services.
As of June 30, 2008, AFICA bond issues totaled more than $6.0 billion, of which $1.5 billion is still outstanding. The largest shares of that total have financed manufacturing operations (49.2 %) and medical facilities (13.2 %).
Contact Information
Fernando L. Batlle
Executive Director
Tel. (787) 722-2525 x-2016/2017
Fax (787) 728-0975
