According to Nacion.com, "Juan Carlos Araya, deputy manager of the Bank, said the six initiatives have already been approved by the Comptroller General of the Republic, and only need to adjust the prospects of new regulations."
The projects are:
- $ 350 million for Racsa, telecommunications and fiber optics.
- $ 180 million in the construction of 200 clinics (CCSS).
- $ 115 million for construction of customs.
- $ 60 million for University of Costa Rica, building construction.
- $ 50 million for UNED, construction of 10 buildings.
The demand increases while $200 million in emissions are expected over the next 12 months.
The prices of these instruments have risen in recent weeks, increasing their demand due to the low interest rates for investing in dollars.
Moreover, there are several of these instruments planned for this year, among them one for the customs office in Peñas Blancas and others for the University of Costa Rica, the Costa Rican Institute of Pacific Ports and the Garabito Thermal Project.
In November 2010 announcements were made for works worth $760 million to be financed through securitizations which never materialized.
An article in Elfinancierocr.com reports that "In October 2010 a change in the regulation of public offering of securities came into force regulating investment instruments originating from securitization and trusts for public works developments."
Costa Rica approved a system to finance the construction of public works via trusts and securitization.
Approved by supervisor Conassif, the mechanism comprises the creation of “Issuing Trusts”, which will issue securities in the local market. Said securities must be priced $50.000 or more, and may only be bought by sophisticated investors.
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