About The Children’s Trust
Established by the Act No. 173 of July 30, 1999 (“Act 173”), as amended, the Children’s Trust Fund (the “Trust”) support projects and programs in the areas of education, healthcare, sports, recreations, and any other activities or projects (the “Initiatives”) that improve the wellbeing of the residents of the Commonwealth of Puerto Rico (the “Commonwealth”). The Trust finances the Initiatives by executing grants agreements with eligible non-profit organizations and/or governmental entities. The Trust does not depend on budgetary support or legislative appropriations from the Government of Puerto Rico. The Trust operates with annual cash payments received from a group of participating tobacco companies under what is called the Master Settlement Agreement of November 23, 1998 (the “Agreement” or “MSA”). The MSA is a legally binding agreement among certain participating tobacco companies (as defined in the MSA), 46 states, 5 territories, and other jurisdictions of the United States of America, including the Commonwealth of Puerto Rico. As per the MSA, the participating tobacco companies are required to make certain cash contributions in perpetuity based on the excise taxes levied on the sale of tobacco products.
The Trust has three outstanding federal tax-exempt bond issuances, not guaranteed by the Government of Puerto Rico, with their respective interest and principal current. Please refer to the publicly available official statements and related documentation for further information about the Trust’s outstanding bond issuances.
