Joint Statement from Treasury Secretary and GDB Chairman on Passage of Bill Approving General Obligation Bond Financing

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Joint Statement from Treasury Secretary and GDB Chairman on Passage of

Bill Approving General Obligation Bond Financing

SAN JUAN, Puerto Rico, March 4, 2014 /PRNewswire-USNewswire/ -- Today,

Treasury Secretary Melba Acosta Febo and Government Development Bank

for Puerto Rico (GDB) Chairman David H. Chafey provided a joint

statement regarding the Puerto Rico Legislature's approval of the

proposed General Obligation bond issuance of up to $3.5 billion. The

bill was signed into law today by the Governor of the Commonwealth of

Puerto Rico, Alejandro García Padilla.

"We are pleased that both the Senate and the House have approved the

authorization for this proposed financing, and that Governor García

Padilla has signed this bill into law. We plan to use the offering

proceeds principally to repay outstanding lines of credit with GDB,

strengthen the GDB's liquidity, and refinance other outstanding debt."

"This proposed bond issuance will support Puerto Rico's ongoing and

aggressive actions to continue strengthening its fiscal position and

will provide additional flexibility as the Island continues its

progress on economic development and job creation initiatives."

The bill authorizes the Secretary of the Treasury to consent to New

York as choice of law and jurisdiction with respect to the bonds.

Barclays, Morgan Stanley and RBC Capital Markets have been selected as

joint lead managers for the upcoming GO bond issuance, with Barclays

acting as lead book-running manager.

Not an Offering of Securities

This statement does not constitute, nor does it form part of, an offer

to sell or purchase, or the solicitation of an offer to sell or

purchase, any securities or an offer or recommendation to enter into

any transaction. This presentation has been prepared for

informational purposes only. Any offer or sale of any security may

only be made pursuant to the relevant offering documents and binding

transaction document and is subject to the detailed provisions

therein, including risk considerations. Prospective purchasers should

obtain a copy of the relevant offering materials prior to making any

investment decisions.

Forward-Looking Statements

The information included in this statement contains certain

forward-looking statements. These forward looking statements may

relate to the fiscal and economic condition, economic performance,

plans and objectives of the Commonwealth of Puerto Rico or its

agencies or instrumentalities. All statements contained herein that

are not clearly historical in nature are forward looking.

This statement is not a guarantee of future performance and involves

certain risks, uncertainties, estimates, and assumptions by the

Commonwealth and/or its agencies or instrumentalities that are

difficult to predict. The economic and financial condition of the

Commonwealth and its agencies or instrumentalities is affected by

various financial, social, economic, environmental, and political

factors. These factors can be very complex, may vary from one fiscal

year to the next, and are frequently the result of actions taken or

not taken, not only by the Commonwealth and/or its agencies or

instrumentalities, but also by entities such as the government of the

United States of America or other nations that are not under the

control of the Commonwealth. Because of the uncertainty and

unpredictability of these factors, their impact cannot, as a practical

matter, be included in the assumptions underlying the Commonwealth's

or its agencies or instrumentalities' projections.

SOURCE Government Development Bank for Puerto Rico (GDB)

-0- 03/04/2014

/CONTACT: Betsy Nazario, GDB, (787) 415-1231,; or Treasury Contact, María E. Quintero, (787) 398-0486,

CO: Government Development Bank for Puerto Rico (GDB)

ST: Puerto Rico




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0000 03/04/2014 15:16:00 EDT

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