Alejandro Camporreale, Executive Director
Puerto Rico Sales Tax Financing Corporation (COFINA)
Puerto Rico Sales Tax Financing Corporation (COFINA)
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Puerto Rico Sales Tax Financing Corporation Releases 2024 Annual Report
San Juan, Puerto Rico – The Puerto Rico Sales Tax Financing Corporation (COFINA) proudly announces the publication of its 2024 Annual Financial Information and Operating Data Report. The report, which will be available on COFINA’s website and the Municipal Securities Rulemaking Board’s EMMA platform, provides an in-depth look at COFINA’s financial performance and operational highlights for the fiscal year ending June 30, 2024.
Key Highlights of the 2024 Annual Report:
The report also highlights COFINA’s pivotal role in managing revenues derived from the Puerto Rico Sales and Use Tax, ensuring fiscal responsibility and the timely fulfillment of debt obligations.
COFINA remains committed to transparency and excellence in financial management as it continues to support Puerto Rico’s economic development.
For more information, please visit www.cofina.pr.gov.
Annual Report Reinforces COFINA's Commitment to Transparency and Financial Stability
(November 11, 2025 - San Juan, Puerto Rico) - The Puerto Rico Sales Tax Financing Corporation (“COFINA” and/or the “Corporation”) has announced the publication of its Audited Financial Statements for the Fiscal Year ending June 30, 2024. This release highlights COFINA's strong fiscal management and adherence to transparent financial practices, marking the fifth consecutive year of timely publication of its audited statements.
The Fiscal Year 2024 audit reveals a continued trend of fiscal stability and efficiency, with a surplus of $23 million transferred to the Commonwealth of Puerto Rico’s Treasury on September 28, 2024. The statement underscores COFINA’s prudent fiscal stewardship and its capacity to meet all debt service requirements as projected.
COFINA’s Executive Director stated, “Our dedication to financial transparency and operational efficiency is reflected in this report. By publishing our audited financials promptly each year, we maintain our commitment to our bondholders and other stakeholders, reinforcing COFINA's reputation as a reliable entity in the capital markets”.
COFINA remains committed to its mission of supporting Puerto Rico’s economic recovery through sound financial management, transparent reporting, and consistent performance in meeting all debt obligations.
Judge Laura Taylor Swain closes the COFINA Title III case, Marking Yet Another Milestone for Puerto Rico’s Fiscal and Economic Stability
San Juan, PR — October 30, 2024 — Judge Laura Taylor Swain has officially closed the Title III case for the Puerto Rico Sales Tax Financing Corp., or COFINA. This pivotal moment marks the successful culmination of COFINA’s reorganization process under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), representing a significant milestone in Puerto Rico's journey toward fiscal stability and economic renewal.
Initiated in 2017, COFINA’s Title III proceedings were undertaken as part of Puerto Rico’s broader strategy to address the island’s debt and fiscal crisis. Through rigorous negotiations and judicial oversight, COFINA’s restructuring allowed it to significantly reduce its obligations, facilitating the issuance of new bonds and achieving an equitable resolution for creditors. The closure of this case underscores COFINA’s commitment to comply with its obligations under its plan of adjustment.
As Puerto Rico continues to emerge from financial hardships, the closing of COFINA’s Title III case stands as a landmark achievement, further enabling the Commonwealth’s economic revitalization efforts and its progress toward long-term fiscal health.
For more information on this and other PROMESA cases, please visit Kroll’s website.
Contact: Inquiries may be directed to dennis.costa@aafaf.pr.gov.
COFINA Achieves Fiscal Stability Milestone in FY25 with Increased Revenue Target and Continued Transparency
(October 31, 2024 - San Juan, Puerto Rico) - The Puerto Rico Sales Tax Financing Corporation (“COFINA” and/or the “Corporation”) confirmed that as of October 23, 2025, it has received and deposited $531,668,486 in sales and use taxes with The Bank of New York Mellon (“BNY”), as Trustee for the COFINA bonds. This figure represents the total sales and use tax revenue projected for COFINA in Fiscal Year 2025, marking the sixth consecutive year of achieving full projected collections. The FY25 target reflects an increase from the FY24 figure of $511,219,696.
The transfer of the required COFINA Revenues between July 1, 2024, and October 23, 2025, was successfully completed, aligning with the Corporation’s obligations under Act 241-2018 and the Third Amended Title III Plan of Adjustment confirmed by the U.S. District Court for the District of Puerto Rico. "This achievement underscores COFINA’s financial stability and reinforces the success of its restructuring efforts,” said COFINA’s Executive Director.
The Corporation remains committed to providing transparent and timely updates to its stakeholders, consistently demonstrating COFINA’s financial resilience and reliability in the capital markets.
Unos cinco años después de la primera modificación de deuda de Puerto Rico, la Junta de Supervisión Fiscal pide cerrar el expediente de la deuda pagadera con el IVU
Los acreedores de la Corporación del Fondo de Interés Apremiante (Cofina) o cualquier otra parte con interés tienen hasta el próximo viernes, 13 de septiembre para objetar el cierre del proceso de quiebra de esa entidad.
El plazo fue establecido por la jueza de distrito federal, Laura Taylor Swain, quien tiene ante sí un pedido de la Junta de Supervisión Fiscal (JSF) para cerrar el caso que comenzó hace poco más de siete años y que en su momento, se convirtió en uno de los más grandes, por cuantía, del mercado municipal estadounidense.
De concederse, Cofina sería el primer emisor de deuda de Puerto Rico en reestructurar sus obligaciones y cerrar todos los temas procesales de un proceso de quiebra bajo la ley federal Promesa.
El pasado 25 de julio, la JSF pidió a la jueza Swain poner fin al proceso de quiebra, lo que implica cerrar en definitiva el expediente judicial y terminar las obligaciones del administrador de dicho expediente, Kroll Restructuring.
Cofina, cuya deuda es pagadera con los recaudos del Impuesto a la Venta y Uso (IVU), invocó las protecciones del Título III de Promesa en mayo de 2017.
De acuerdo con la moción de la JSF, el proceso de modificación de deudas de Cofina fue completado. Sin embargo, el caso no había concluido, porque todavía quedaban pendientes de pago unos $100,000 al Comité de Acreedores no Asegurados (UCC). Se trata de una distribución que correspondería al UCC o la clase 9 del Plan de Ajuste de Cofina (PDA-Cofina).
Concretamente, el pago correspondería a dos reclamaciones de la extinta casa de inversiones Lehman Brothers, cuyo proceso de liquidación, a su vez, abre la puerta para identificar los recursos que se le adeudan y que pueden servir para indemnizar a sus acreedores o resarcir obligaciones.
“La (JSF) ha estado trabajando con la Autoridad de Asesoría Financiera y Agencia Fiscal (Aafaf) para instruir al Departamento de Hacienda de Puerto Rico para que desembolse los $100,000 a Lehman como tenedor de las únicas dos reclamaciones admitidas del UCC bajo la clase 9 del PDA-Cofina”, reza la moción del organismo. Dicho pago se habría procesado el pasado 28 de agosto.
De acuerdo con el expediente judicial de Cofina, una vez la JSF certifique al tribunal que el deudor ha cumplido con todas las distribuciones requeridas en el plan de pagos, ello sentaría las bases para el cierre definitivo del caso.
Inicialmente, las partes con interés tenían hasta el 11 de septiembre para expresarse, pero a petición de la JSF, Swain otorgó dos días adicionales al tiempo que acogió una declaración del director ejecutivo del organismo, Robert Mujica, quien certificó el pago efectuado a Lehman.
El PDA-Cofina fue el primero en incorporar la premisa de compartir con los bonistas, beneficios adicionales si los recaudos del gobierno puertorriqueño se desempeñaban por encima de los estimados.
El plan fue aprobado por Swain el 5 de febrero de 2019 y unos siete días más tarde, Cofina intercambió su deuda vigente por cuatro series de bonos, exentos y tributables. Excluyendo los pagos por recaudos adicionales, los bonistas principales de Cofina recibieron unos 93 centavos de dólar de su acreencia y los subordinados, unos 55 centavos de dólar.
La reestructuración de Cofina fue la primera que la JSF consumó con un respaldo mayoritario de los acreedores, pero también la primera en la que se pagó a las partes por negociar con el organismo.
En total, el PDA-Cofina incluyó $1,200 millones en efectivo como compensación a los bonistas, en especial, a quienes negociaron el acuerdo, incluyendo unos $332 millones en gastos de consumación. Los bancos de inversión que participaron de la reestructuración se agenciaron unos $32 millones en comisiones. Los honorarios del caso se estimaron en $140 millones.
Asimismo, la quiebra de Cofina –entidad que a diferencia del gobierno central, no encaraba un cuadro de insolvencia- arrojó dudas acerca de los gravámenes y derechos de los bonistas. Para lidiar con la situación, la JSF impulsó un mecanismo de mediación alterno en el cual, el UCC y los bonistas debieron definir a quién pertenecían concretamente los recaudos del IVU: si al Tesoro de Puerto Rico, es decir al gobierno central o a la corporación pública.
En lugar de resolver tal controversia, como la JSF intentó ahora con los bonos de la Autoridad de Energía Eléctrica (AEE), el UCC y los bonistas -en concierto con la JSF- acordaron distribuirse los recaudos del IVU más allá de aquellos pignorados inicialmente en los bonos de Cofina. Mientras Cofina, retuvo el 53% de los ingresos del IVU para pagar a sus acreedores, la diferencia quedó en manos del gobierno central.
Como parte del acuerdo y entre otras cosas, el gobierno de Puerto Rico no podrá eliminar o modificar el impuesto al consumo sin el consentimiento de los bonistas y se subordinó el estado de derecho del territorio estadounidense a aquel del estado de Nueva York en caso de discrepancias.
En dólares y centavos, el plan de pagos de Cofina reestructuró aproximadamente una cuarta parte de la deuda pública de Puerto Rico. En específico, se modificaron unos $17,512 millones en bonos, reduciendo el principal adeudado en unos $6,000 millones.
Según el PDA-Cofina, los ingresos por recaudos del IVU debieran aumentar aproximadamente en 4% todos los años, alza que serviría para honrar la deuda modificada y pagos adicionales, una vez se cumplan todas las obligaciones que garantizan o reciben recaudos por concepto del impuesto al consumo.
La deuda de Cofina terminaría de pagarse en el 2058
By The Star Staff
The Puerto Rico Sales Tax Financing Corporation (COFINA in Spanish) has settled a $12.6 million claim with the U.S. Internal Revenue Service (IRS), ending a dispute that began in 2017.
The information is contained in a July 17 court order from COFINA’s Title III bankruptcy case, which ended in 2019, without resolving the claim with the IRS.
According to a July 12 stipulation, the IRS agreed to withdraw its claim. However, the IRS, which has been auditing COFINA’s tax filings related to some of its bonds, said it will continue with the audit.
The federal agency said it will pay COFINA the amount as has been agreed to by the IRS and COFINA in settlement of the audit before closing the audit, according to the order.
Under former sections of the U.S. Internal Revenue Code of 1986, COFINA was permitted to issue Build America Bonds (BABs) during 2009 and 2010. Under applicable Tax Code sections, holders of BABs are entitled to a tax credit equal to 35 percent of the interest payable by the issuer of the BABs. In lieu of bondholders receiving a tax credit, however, the Tax Code permitted issuers of BABs such as COFINA to instead elect to receive with respect to each interest payment date a direct subsidy payment from the Internal Revenue Service (the IRS) equal to 35 percent of the interest payable to the holder under that BAB for that date.
Similarly, the Tax Code permitted COFINA to issue recovery zone economic development bonds (RZEDBs) during 2009 and 2010. RZEDBs were similar to BABs except that the IRS’s direct subsidy payments were established at 45 percent of the interest payable, rather than 35 percent. On June 30, 2010, COFINA issued both BABs and RZEDBs and elected to treat those bonds as direct payment bonds. For each interest payment date on the BABs, through and including February 1, 2019, COFINA submitted the request for the direct payment, and the IRS made all requested payments except for the February 1, 2019 payment. For each interest payment date on the RZEDBs, COFINA submitted the request for the direct payment, but the IRS ceased making payments to COFINA beginning with the May 1, 2018 payment.
After the commencement of COFINA’s Title III Case on May 5, 2017, the Title III Court ordered Bank of New York Mellon, as trustee, to hold the pledged sales taxes used to pay interest on the bonds and not pay them to the COFINA bondholders, including holders of the COFINA BABs and RZEDBs. As a result, throughout the pendency of COFINA’sTitle III Case, all required interest payments, including with respect to the BABs and RZEDBs, were deposited by the Corporation into the appropriate BNYM accounts.
On January 19, 2024, the COFINA Board of Directors approved the Fiscal Year 2023 Annual Financial Information and Operating Data Report.
The Report highlights COFINA's consistent compliance with the Plan of Adjustment, and the SUT's strong performance during FY2023. The Report also provides SUT collection data through November 30, 2023, which shows a positive collection trend for the current Fiscal Year 2024.
COFINA ANNOUNCES RECEIPT OF ALL SALES AND USE TAXES OWNED FOR THE FIFTH CONSECUTIVE YEAR
COFINA also published its Audited Financial Statements for Fiscal Year 2023, resulting in an underspend for the fourth consecutive year, and a $16.4 million surplus transfer for the Commonwealth.
(October 23, 2023 - San Juan, Puerto Rico) - The Puerto Rico Sales Tax Financing Corporation (“COFINA” and/or the “Corporation”) confirmed that sales and use taxes received and deposited between July 1, 2023, and October 20, 2023 with The Bank of New York Mellon (“BNY”), as Trustee for the COFINA bonds, total $511,219,696 (“COFINA Revenues”), which equals the amount of sales and use taxes owned by COFINA for fiscal year 2024. This marks the fifth time since the restructuring of COFINA’s bonds, pursuant to Act 241-2018 and COFINA’s Third Amended Title III Plan of Adjustment (the “COFINA Plan of Adjustment”) confirmed by the U.S. District Court for the District of Puerto Rico pursuant to Title III of the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), that COFINA receives the sales and use taxes which were determined to be its property.
On fiscal years 2022 and 2023, the total COFINA Revenues owned by COFINA for such periods ($472,651,346 and $491,557,399, respectively) were received and deposited with BNY between July 1, 2021, and October 15, 2021, and between July 1, 2022, and October 20, 2022, respectively.
“COFINA’s Independent Board of Directors and its management are pleased this milestone was achieved for the fifth consecutive year, as it evidences COFINA’s successful restructuring” said Alejandro Camporreale, COFINA’s Executive Director.
COFINA also announced that it has published the audit of its financial statements for fiscal year 2023 which will also be posted on the Municipal Securities and Rulemaking Board Electronic Municipal Market Access website (“EMMA”).The completion of the audit in the month of October for its fiscal year ended June 30th for the fourth consecutive year continues to demonstrate COFINA’s accomplishment in achieving transparency and commitment to meet its obligations to its bondholders as part of its return to the capital markets. Under the leadership of its board of independent directors, COFINA has become the first issuer in the Commonwealth of Puerto Rico to publish its fiscal year 2023 audited financial statements.
Another highlight evident within the audited financial statements is COFINA’s fourth consecutive year reporting net excess of revenues over expenditures. For the fiscal year 2023, COFINA reported $19,331,416 in excess revenues after expenditures and other financing uses.
COFINA reiterated its commitment to the Commonwealth of Puerto Rico; on September 28, 2023 the Corporation transferred $16,362,779 from the surplus in COFINA’s Remainder Fund to the Treasury. This was made possible due to the Corporation’s investment returns on its cash reserves.
Overall COFINA continues to deliver on its commitment to transparency and compliance with projected revenues. This has been evident through weekly published reports detailing target collections for the Corporation.
San Juan, Puerto Rico
On April 24, 2023, the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”) certified the Puerto Rico Sales Tax Financing Corporation’s (“COFINA’s”) 2023 fiscal plan.
The fiscal plan was certified pursuant to Section 201(f) of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”), which allows for joint development of the plan between COFINA and the Oversight Board.
In addition, the Oversight Board determined that the Special Revenue Funds' revenue forecast to be used for the operational budget for COFINA for fiscal year 2024 is $1.68 million.
(October 21, 2022 - San Juan, Puerto Rico) - The Puerto Rico Sales Tax Financing Corporation (“COFINA”) confirmed that sales and use taxes received and deposited between July 1, 2022 and October 21, 2022 with The Bank of New York Mellon (“BNY”), as Trustee for the COFINA bonds, total $491,557,399 (“COFINA Revenues”), which equals the amount of sales and use taxes owned by COFINA for fiscal year 2023.
This marks the fourth time since the restructuring of COFINA’s bonds, pursuant to Act 241-2018 and COFINA’s Third Amended Title III Plan of Adjustment (the “COFINA Plan of Adjustment”) confirmed by the U.S. District Court for the District of Puerto Rico pursuant to Title III of the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), that COFINA receives the sales and use taxes which were determined to be its property.
Thursday, October 20, 2022
COFINA Publishes Audited Financial Statements for FY2022
(San Juan, Puerto Rico) – On October 20, 2022, the Puerto Rico Sales Tax Financing Corporation (“COFINA” for its Spanish acronym) released the corporation’s Audited Financial Statements for the Fiscal Year 2021-22, which ended June 30, 2022 (the “Audit”).
COFINA has posted the Audit on the Municipal Securities Rulemaking Board Electronic Municipal Market Access website (“EMMA”), and on its website.
The completion of the Audit shows the Corporation’s commitment to transparency, compliance, and operational efficiency.
COFINA ANNOUNCES RECEIPT OF ALL SALES AND USE TAXES OWNED FOR THE THIRD CONSECUTIVE YEAR
COFINA also publishes Audited Financial Statements for Fiscal Year 2021 and praises Supreme Court Decision not to hear last appeal challenging the validity of the COFINA Plan of Adjustment
(October 18, 2021 - San Juan, Puerto Rico) - The Puerto Rico Sales Tax Financing Corporation (“COFINA”) confirmed that sales and use taxes received and deposited between July 1, 2021 and October 15, 2021 with The Bank of New York Mellon (“BNY”), as Trustee for the COFINA bonds, total $472,651,346 (“COFINA Revenues”), which equals the amount of sales and use taxes owned by COFINA for fiscal year 2022. This marks the third time since the restructuring of COFINA’s bonds, pursuant to Act 241-2018 and COFINA’s Third Amended Title III Plan of Adjustment (the “COFINA Plan of Adjustment”) confirmed by the U.S. District Court for the District of Puerto Rico pursuant to Title III of the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), that COFINA receives the sales and use taxes which were determined to be its property.
On fiscal years 2020 and 2021, the total COFINA Revenues owned by COFINA for such periods ($436,992,738 and $454,472,448, respectively) were received and deposited with BNY between July 1, 2019 and November 21, 2019 and between July 1, 2020 and October 19, 2020, respectively.
“COFINA’s independent Board of Directors and its management are pleased that this milestone was achieved for the third consecutive year, as it evidences COFINA’s successful restructuring” said Carlos M. Yamín, COFINA’s Executive Director.
COFINA also announced that it has received and released the completed audit of its financial statements for fiscal year 2021 and has posted the audit on the Municipal Securities and Rulemaking Board Electronic Municipal Market Access website (“EMMA”). The completion of the audit in the month of October for its fiscal year ended June 30th for the second consecutive year continues to demonstrate COFINA’s commitment to transparency and meeting its obligations to its bondholders. Under the leadership of its board of independent directors, COFINA has become the first issuer in the Commonwealth of Puerto Rico to publish its fiscal year 2021 audited financial statements.
Additionally, COFINA announced that, on October 4, 2021, the U.S. Supreme Court denied the Petition for a Writ of Certiorari presented by COFINA’s junior bondholders on April 2, 2021 challenging the validity of the COFINA Plan of Adjustment under PROMESA.
The petition challenged the United States Court of Appeals for the First Circuit’s decision to uphold Judge Laura Taylor Swain’s order confirming the COFINA Plan of Adjustment. The First Circuit’s March 2, 2021 decision concluded that efforts to revoke the COFINA Plan of Adjustment were barred under the doctrine of equitable mootness because the plan has already been implemented. The U.S. Supreme Court’s decision conclusively resolves the last remaining challenge to the COFINA Plan of Adjustment.
“COFINA’s independent Board of Directors and its management are pleased that the U.S. Supreme Court decided not to hear the last appeal challenging the validity of the COFINA Plan of Adjustment. The Court’s decision marks the end to possible challenges to the COFINA Plan of Adjustment and reaffirms the Corporation’s successful restructuring,” added Mr. Carlos M. Yamín, COFINA’s Executive Director.
For additional information please visit COFINA’s website at www.cofina.pr.gov.
Forward-Looking Statements
This press release includes forward-looking statements, which include, but are not limited to, expectations with respect to the COFINA Bonds. The Fiscal Agency and Financial Advisory Authority (“AAFAF”) and COFINA cannot provide assurances that the future developments affecting AAFAF, COFINA, or the bonds will be as anticipated. Actual results may differ materially from those expectations due to a variety of factors. Any forward-looking statement made in this release speaks only as of the date hereof and AAFAF and COFINA do not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
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Press Release - FY2020 Audited Financial Statments
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