Description: Environmental Bonds are Tax-Exempt bonds for a purpose of financing airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water, sewage facilities, solid waste disposal facilities, qualified residential rental projects, facilities for the local furnishing of electric energy or gas, local district heating or cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, or environmental enhancements of hydroelectric generating facilities.
Benefits: The benefits of Environmental Bonds include:
- Long term – Maturity of the bonds is flexible and can range from ten to thirty years.
- Low Interest Rate – Rates are generally 2.0% to 3.0% below Prime Rate. The interest rates are discounted to reflect Tax-Exempt status. Rates range well below conventional financing.
- Flexible Terms – Interest rates may be fixed or variable and can finance up to 100% of the eligible project costs.
- Favorable Terms – There is no fixed minimum job creation or capital investment requirements, although some jobs have to be created.
- Quasi-State Guarantee – The bonds can receive a quasi-state guarantee (Moral Obligation) from the State of Illinois, which allows the borrower to attach to the State’s credit strength.
Eligibility: Any qualified entity that utilizes financing for environmental purposes stated above. Environmental Bonds require volume cap but carried over volume cap may be used.
Fees: A $2,000 non-refundable application fee is due when the application is submitted. An issuance fee of 60 basis points and Professional fee of 20 basis points due at closing plus the cost of Issuer’s legal counsel.
Contact: For an application or additional information please contact Andrew Hamilton, Executive Director, Will Kankakee Regional Development Authority (WKRDA), Two Rialto Square, 116 N. Chicago Street, Joliet, Illinois 60432, Tel: 815/723-9070.