(Bloomberg) -- Illinois plans to sell about $2 billion in short- and long-term bonds in May, the first scheduled issuance from the state amid the coronavirus pandemic.
The state plans to auction about $1.2 billion of short-term tax-exempt general-obligation certificates during the first week of May to help provide liquidity during the Covid-19 crisis and resulting delay in income-tax payments, Carol Knowles, spokeswoman for the Governor’s Office of Management and Budget, said in an emailed statement Tuesday.
Illinois Governor J.B. Pritzker on April 15 revised revenue projections down $2.7 billion in fiscal year 2020 and $4.6 billion in 2021 as the pandemic hits the state’s economy.
Illinois also is planning to issue long-term bonds for construction and maintenance projects and to “fund our commitments under the pension buyout program to keep pace with seasonal retirements,” according to the statement. About $1 billion of long-term general-obligation bonds, of which $300 million will be sold as taxable and $700 million as tax-exempt, also are on the schedule around May 12 through a negotiated sale, according to the statement.
The bonds and certificates are backed by the state and a continuing appropriation is in place for repayment without further action by the General Assembly, Knowles said. The size, timing, and structure remain subject to market conditions, she said.
S&P Global Ratings in a report on Tuesday assigned a BBB- rating on Illinois. The rating partially “reflects our opinion of Illinois’ weak liquidity, structurally unbalanced budget, and near-term revenue uncertainty,” according to S&P.
©2020 Bloomberg L.P.
RECOMMENDED FOR YOU
POPULAR