CHICAGO – Hungry for new money to fuel its capital budget, Illinois will take competitive bids next week on $300 million of taxable sales-tax backed bonds, with another $1.6 billion of new-money and refunding debt in the works.

About half of the bonds will sell with a sturdy and highly rated sales-tax backing. The other half will come with Illinois’ general obligation backing, testing market appetite for paper that offers steep yield penalties but faces headline risk as legislative action to address the state’s pension crisis is needed in the coming weeks to avert further credit deterioration.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.