Puerto Rico aims to insure $500 mln of $2 bln bond
Jan 28 (Reuters) - Puerto Rico is negotiating with at least two bond insurers to insure around $500 million of a planned $2 billion bond issue, which would extend the appeal of the sale beyond the hedge funds currently buying the U.S. commonwealth's debt, according to two sources close to the process. The island's Government Development Bank (GDB) is in talks with MBIA's National Public Finance Guarantee Corp and Assured Guaranty, the sources said. The insurers already have substantial exposure to Puerto Rico's debt and may be trying to protect their exposure in other areas by helping Puerto Rico raise more money, the sources said. The insured part of the deal would have a coupon of 5 percent, according to the sources. Assured Guaranty did not respond to a request for comment. MBIA declined to comment. "The insurance companies don't want to do it but they are being leveraged into doing so because of their exposure to Puerto Rico Electric Power Authority (PRE...