annual report - Hypo Real Estate Holding AG

Client: Puerto Rico Sales Tax Financing Corporation (COFINA)
Need: COFINA was created with the purpose of refinancing a portion of the Commonwealth of
Puerto Rico’s debt. COFINA’s debt would be supported by a new sales tax. To lock in the
cost of its anticipated inaugural bond issuance, COFINA needed a forward starting interest
rate hedge.
Solution: In August of 2007 COFINA awarded DEPFA an interest rate swap through a competitive pro-
cess. DEPFA competed among the leading banks in the municipal derivatives market and
provided the best execution level for the interest rate swap. This was a one of the largest
municipal swap transactions done in 2007.
People: DEPFA BANK · David Burke, Managing Director · Brian Nevel, Director
Brittanie Schmieder, Associate Director
David Burke:
“Originally planned as a negotiated swap away from us,
COFINA’s financial advisor asked DEPFA to participate
in a competitive bid as COFINA believed it was not
getting efficient pricing or best execution. DEPFA was
approached because of being known for our singular
client-focus and efficient execution.”