Illinois plans $800 million bond sale

The state of Illinois is hoping to attract strong investor demand for the debt sale, in spite of the state's poor credit rating.

January 4, 2012

By Ashley Gross

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(Photo/PBCChicago)
Illinois bonds are being used for things like fixing and building schools

The state of Illinois is hoping investors will snap up $800 million worth of bonds next week. The investment world has not looked kindly on Illinois bonds in recent years as the state has struggled with a mountain of debt. Moody’s rates Illinois bonds the worst in the country, tied with California, and Standard & Poor’s rates the state second-worst.

But Illinois’s director of capital markets, John Sinsheimer, said he’s hopeful lots of investors will be interested in these bonds.

"We’ve seen a lot of changes in the state and its finances to the good, with the tax increases that were approved last year, so we would anticipate the bonds will be well bid," Sinsheimer said.

The state plans to use the money from next week’s sale for capital projects like building schools and fixing roads. Sinsheimer said Illinois will sell another round of bonds in March.