Credit Enhancements for Units of Government

Indiana Bond Bank’s New Credit Enhancement Tool for Local Units of Government in Indiana

The Indiana Bond Bank is pleased to announce the newest tool in its toolbox.  This new credit enhancement  is aimed to help local units of government access the capital markets and achieve a lower cost of borrowing. This credit enhancement tool was designed, though not limited to, for local units of government that may be unrated, have credit concerns, or have challenges accessing the capital markets through traditional bond issuance. Beginning in 2019, HEA1473 authorizes the Indiana Bond Bank to create a special purpose vehicle that will act as a credit enhancement tool for local units of government that are unable to obtain affordable financing. Similar to the financial security that escrow accounts offer mortgage lenders, this Special Purpose Vehicle will serve as a mechanism in which potential bond holders can be confident that payments will be made on behalf of the borrower, ultimately allowing them to offer  more affordable financing to local units of government.  As the Indiana Bond Bank continues to fine tune the mechanics of this new tool, we are asking those who may be interested to reach out so that we can put the tool to work right away!

If your unit of government has a project and has not been able to obtain affordable financing and are interested in how this new tool might serve you, please fill out this non-committal interest list sign up form below.

 

Credit Enhancement Request for Information 

 

The Indiana Bond Bank (“Bond Bank” or “IBB”) desires to bring together a financing team to partner with the Bond Bank to manage future bond issuances utilizing the new credit enhancement tool (commonly referred to as “Special Purpose Vehicle” or “SPV”) created by the Indiana House Enrolled Act (HEA) 1473 (2019) and codified as IC 5-1.5-8-5.1.  Click below for the full Request for Information.

 

Indiana Bond Bank Credit Enhancement RFI September 2019 

 

 

Credit Enhancement Pre-RFI Feedback Webinar

 

Webinar Slide Deck

 

Webinar Q & A