CHICAGO – For buyers, the allure of attractive yields, diversification, and liquidity drowned out the project risks tied to investing in the Iowa Fertilizer Co.’s $1.2 billion of junk-bond paper.

The for-profit Iowa Fertilizer Co. – owned by Egypt-based Orascom Construction Industries - on Tuesday sold its long planned issue that tapped a big chunk of Iowa’s $2.6 billion allocation of Midwestern Disaster Area Bonds to qualify for tax-exemption .

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