SAN JUAN, Puerto Rico/NEW YORK, Nov 24 (Reuters) - Puerto Rico’s planned bond deal of up to $2.9 billion will not happen before early 2015, two finance industry sources briefed on the matter said on Monday.
The delay comes as Puerto Rico’s governor, Alejandro Garcia Padilla, has so far been unable to muster the support of his own party for a tax hike needed to back the bond deal.
Barclays has been selected as lead underwriter for the deal, with Morgan Stanley and RBC selected as co-managers, the sources said. The banks did not immediately return requests for comment.
Officials at Puerto Rico’s Government Development Bank (GDB), the U.S. commonwealth’s financing arm, had said early that they wanted to complete the deal this year, possibly as early as November.
A spokesman for the GDB did not immediately return a request for comment. (Reporting by Reuters in San Juan and Edward Krudy in New York; Editing by Bernadette Baum)