CHICAGO — After escaping punishment from rating agencies for dipping into reserves to erase its budget deficit, Chicago will enter the market this week with $770 million of new-money and refunding general obligation bonds in a transaction that marks the city’s first use of federal stimulus bonding programs.

The city will take retail orders on Tuesday and open up the deal to institutional buyers on Wednesday. The deal is split into four series of up to $420 million of tax-exempt new-money and refunding bonds, up to $110 million of taxable new-money and refunding bonds, $110 million of taxable new-money Build America Bonds, and up to $133 million of taxable recovery zone economic development bonds.

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