The Illinois Housing Development Authority (IHDA) recently completed the sale of $127.6 million in multifamily taxable bonds, its first issuance of fixed-rate general obligation bonds since 2007 and the economic crisis.
Before the sale, IHDA through the senior manager for the transaction, Ramirez and Co., Inc., conducted a two-week marketing effort to gauge investor interest.
“With this recent bond sale, the housing industry can take note there is a resurgence of private investor interest and confidence in housing bonds,” IHDA Executive Director Mary R. Kenney said in a statement. “This sale provided IHDA the necessary financial leverage to fulfill our mission of creating and preserving affordable rental housing for low- to moderate-income people across Illinois.”
The high demand for IHDA’s taxable bonds was very evident as the sale ended three times oversubscribed. At the time of pricing, the 10-year taxable bonds were priced at 160 basis points over the 10-year U.S. Treasury rate.
The taxable housing bonds were rated Aa3 by Moody’s and AA by Standard & Poor’s and backed by IHDA’s general obligation credit.