The Government Development Bank of Puerto Rico says Puerto Rico’s recent sales of $1.4 billion in notes to outside banks show the commonwealth is on the right track.

On Aug. 29 the Puerto Rico Highways and Transportation Authority sold $400 million in bond anticipation notes to RBC Capital Markets.

While the notes will mature on Sept. 1, 2015, the authority expects to refinance the notes in the next few months through the sale of long-term bonds.

The yield was equal to the one month LIBOR plus 240 basis points for the first year. The notes have an annualized yield of 2.58% if they are replaced with bonds within the first 12 months. If the notes not redeemed within 12 months, the yield jumps to significantly higher values.

“The successful placement of these securities demonstrates the confidence the financial community has in the Commonwealth of Puerto Rico, the PRHTA and the GDB,” said GDB interim president José Págan.

Recently the GDB and the Puerto Rico Treasury Department also privately placed $400 million of bond anticipation notes with Barclays Capital.

Finally, the GDB has already closed $900 million in tax and revenue anticipation notes for the Puerto Rico treasury. Banks in the continental United States and in Puerto Rico bought two thirds of the notes. The GDB bought $300 million.

Puerto Rico officials did not immediately respond to requests for information about the interest being paid on the GDB and Treasury notes.

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