Virgin Islands Public Finance Authority



Tobacco Settlement Financing Corporation

On November 23, 1998 the Attorneys General and other representative of 46 states, Puerto Rico, the U.S. Virgin Islands, American Samoa, the Northern Mariana Islands, Guam and the District of Columbia (the “Settling States”) signed an agreement with the four largest tobacco manufacturers (Philip Morris Incorporated, R. J. Reynolds Tobacco Company, Brown & Williamson Tobacco Corporation, and Lorillard Tobacco Company collectively the “Original Participating Manufacturers“ or “OPMs”) ending a four year legal battle between the states and the industry that began in 1994, when Mississippi became the first state to file suit. The MSA represented the resolution of a large potential financial liability of the OPMs for smoking-related injuries by cigarette consumers. Under the MSA, the Settling States receive cash payments from the tobacco companies for a period of 25 years in exchange for the companies being exempt from future legal action.

The Tobacco Settlement Financing Corporation (the “Corporation”) is a public corporation independent of the Government of the Virgin Islands (the “GVI”) and was established pursuant to the Tobacco Settlement Financing Act of 2001 (29 VIC §1024). The Corporation was formed for the purposes of:

1) purchasing all the government’s right, title, and interest in the Tobacco Settlement Fund litigation awards received and to be received by the GVI under the Master Settlement Agreement entered into with the four largest tobacco manufacturers.

2) to issue Bonds to pay the purchase price for acquiring such proceeds and

3) enabling the government to pay for or refinance hospital and healthcare projects and other undertakings of the government.

The proceeds of the bonds were used to finance several hospital and health department capital projects, including the Charlotte Kimmelman Cancer Institute on St. Thomas and the construction of the V.I. Cardiac Center on St. Croix, and to fund operating costs of the Corporation.

On November 1, 2001, the Corporation entered into a Purchase and Sale Agreement with the Government of the U.S. Virgin Islands to purchase the rights, title, and interest in Tobacco Settlement fund litigation awards for the amount of $18.4 million, under the Master Settlement Agreement dated November 23, 1998. Tobacco bonds were issued in 2001 and 2006 to finance various health related capital improvement projects throughout the territory.



The investor information webpages (collectively, the “Investor Page”) provide information about bonds, notes, and other securities issued or secured by Virgin Islands Public Finance Authority (“VIPFA”) or related entities. Because each security may involve different sources of payment and security, different obligations (if any) of the issuer and/or any obligated person, and different limitations on such obligations, you should refer to the official statement of any particular security for additional information. The only information on the VIPFA’s website that is posted with the intention of reaching the investing public, including bondholders, rating analysts, financial advisors, or any other members of the investment community, is located on the Investor Page, access to which requires review of and consent to the conditions contained in these Terms of Use.

Please take a few minutes to read the Terms of Use below and indicate your acknowledgment before accessing the rest of the Investor Page. You may be tempted to click through the Terms of Use, but they are essential to understanding the information presented on the Investor Page.


  1. Not an Offer to Sell/Buy Securities
    The information provided on the Investor Page does not constitute an offer to sell or buy securities or the solicitation of an offer to sell or buy securities and should not be relied upon to provide specific offering information in connection with any issuance, sale, resale, or remarketing of bonds, notes, or other municipal obligations.
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    Any financial document contained on the Investor Page is marked with a date (the “Dated Date”) and speaks only as of that Dated Date, which may be prior to the date it is posted on this website. You are cautioned not to assume that any information has been updated beyond the Dated Date unless a document expressly states that it constitutes an update of a specific portion of a document. No inference should be made that the operations of VIPFA or any related entities and/or other economic conditions have remained the same since the Dated Date. VIPFA expressly disclaims any duty to provide an update of any document contained on the Investor Page.
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