(INDIANAPOLIS) – Today, HEA 1473 was ceremonially signed into law by Governor Eric Holcomb. This piece of legislation will enhance the work of the Indiana Bond Bank (IBB). The primary mission of IBB is to deliver targeted financial solutions to local challenges. The Bond Bank serves Indiana cities, towns, townships, public school corporations, counties, public libraries, county hospitals, and public universities.
“We are so excited to have this opportunity to further the mission and purpose of the Indiana Bond Bank.” commented Indiana Treasurer of State Kelly Mitchell, chair of the IBB Board. “IBB serves every corner of the state and HEA 1473 provides one more tool to assist local communities as they work to serve Hoosiers.”
The legislation allows for the Indiana Bond Bank to create a special purpose vehicle (SPV) credit enhancement program for local units of government. Frequently, the Indiana Bond Bank is used as a ‘lender of last resort’. The SPV will provide an opportunity for those communities to get a higher credit rating and lower their borrowing costs, returning more tax dollars to the community.
Mark Wuellner, Executive Director of the IBB, had this to say about the new tool, “We are excited to provide access to capital for lower-rated and unrated local units by creating this structure that achieves higher credit ratings than would be available to them on their own.”
HEA 1473 was championed in the Indiana General Assembly by State Representative Greg Steuerwald and by State Senator Randy Head.
“I was honored to assist local units of government by giving the Indiana Bond Bank an additional tool to create enhanced credit ratings for local government, and thereby lowering costs,” Steuerwald said.
“House Enrolled Act 1473 also ensures financial growth for our state’s local government units,” Head said.
For more about IBB and forthcoming information about the launch of the special purpose vehicle (SPV) credit enhancement program, click here.