May 16, 2013
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Illinois Housing Development Authority

 
 
The Illinois Housing Development Authority (IHDA) today announced its recent sale of $127.6 million in multifamily taxable bonds demonstrated strong private investor interest in Illinois housing bonds.
 
Before the sale, IHDA through the senior manager for the transaction, Ramirez and Co., Inc., conducted a two-week marketing effort to test the market and gauge interest from investors as this was the housing finance agency’s first issuance of fixed-rate general obligation bonds since 2007 and the economic crisis.
 
“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. “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.