Illinois quickly sells bonds despite lower rating

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Updated: January 12, 2012 3:07PM

Despite hits to its credit rating, Illinois on Wednesday completed the sale of $800 million in bonds and received a lower interest rate than similar sales in recent years.

The state sold $525 million in tax-exempt bonds at 3.9125 percent. It also sold $275 million in taxable bonds at 5.2992 percent.

Proceeds will pay for public works around the state as part of the Illinois Jobs Now capital plan.

The tax-exempt bonds received eight bids, with Wells Fargo picked as the winner, state officials said. They said the taxable bonds attracted nine bids; J.P. Morgan Securities LLC was the winner.

“These bond bids make clear that investors know we are taking steps to correct the decades of fiscal mismanagement in our state, and they understand we continue to take major steps to reform pensions and control skyrocketing Medicaid costs in an effort to return Illinois to sound financial footing,” said David Vaught, state budget director.

David Roeder