Hurricane Maria: ‘Attracting Capital to Puerto Rico Electric Power Authority Is More Critical Than Ever’

first_imgHurricane Maria: ‘Attracting Capital to Puerto Rico Electric Power Authority Is More Critical Than Ever’ FacebookTwitterLinkedInEmailPrint分享Washington Post:Hurricane Maria has dealt a new blow to Puerto Rico’s bankrupt electric company — knocking out power for the entire island and imposing costly repair burdens on a utility that was already struggling with more than $9 billion in debt, poor service and sky-high rates.And that means more hardship for local residents and businesses, whose electric rates are already more than twice the national average.Even before it was hit by Irma and now Maria, the Puerto Rico Electric Power Authority said it needed more than $4 billion to overhaul its outdated power plants and reduce its heavy reliance on imported oil. The company filed, in effect, for bankruptcy July 2.Now, with Maria toppling transmission lines and 100 percent of Puerto Ricans without electricity, PREPA faces millions of dollars more for hurricane repairs.The utility’s struggles are a key part of the commonwealth’s struggles to restructure about $74 billion in debts, overhaul its economy and stem the outflow of Puerto Rican citizens to the U.S. mainland.“PREPA and electricity here have always been critical to economic recovery,” said Natalie Jaresko, a veteran banker, former finance minister in Ukraine and adviser to the Puerto Rican government. “What the hurricane is proving is that that infrastructure is fragile. It makes attracting capital to PREPA more critical than ever.”More: Hurricane Maria has dealt a heavy blow to Puerto Rico’s bankrupt utility and fragile electric gridlast_img read more

PFZW takes stake in Rabobank corporate-loan portfolio

first_imgThe €137bn healthcare scheme PFZW has invested an undisclosed amount into a €3.2bn Rabobank portfolio of corporate loans. The private risk-sharing transaction involved a stake in more than 500 corporate loans, mostly to Dutch companies.Rabobank and PFZW said the deal gave the pension fund access to a credit-risk portfolio that increased the diversity of its asset mix, as well as a “stable and robust” long-term return, but declined to provide further details.PFZW pointed out that it had some experience with similar risk-sharing transactions, adding that their added value had remained, even through the financial crisis. Rabobank said the deal would reduce its own credit risk, allowing it to free up capital for new corporate lending.Jan-Willem van Oostveen, PFZW’s manager of financial and investment policy, said the pension fund “really appreciated” working with banks with a good track record in corporate lending.“This collaboration shows how Dutch pension funds and banks together can stimulate investments in the Dutch economy,” he said.In the opinion of Tanja Cuppen, chief financial risk officer at Rabobank International, the new cooperation is a sign of the growing opportunities for Dutch pension funds to participate in the financing the local economy.Both PFZW and Rabobank declined to provide details about the ratio between local and foreign loans, or how both players were to share the credit risk.A spokesman for Rabobank said local loans were provided to large companies, and that loans to companies overseas would focus on food and agri business, one of the bank’s core sectors.According to Maurice Wilbrink, spokesman for PFZW, the expected duration of the transaction would be between five and six years on average.“We have agreed that, during the first three years of the transaction, Rabobank may replace the loans that are being paid off by new loans matching the agreed criteria,” he said.“After this three-year period, the loans in the portfolio pay off.”last_img read more