Governor Ryan Announces Illinois' Return to Bond Market

SPRINGFIELD -- Governor George H. Ryan announced today the state had moved forward in the sale of $110 million in Build Illinois refunding bonds, a transaction that had been put on hold in light of last week's tragic national events. The state's sale represented the first state general obligation or revenue bond issue marketed since September 11.

The Governor noted the importance of conducting the transaction in an effort to normalize the nation's financial markets.

"We have moved forward to demonstrate our faith in the strength of the American economy," Ryan said. "Our Illinois FIRST program will do its part to help reinvigorate the financial markets."

Today's sale also showed the confidence investors place in Illinois bonds. The state's underwriting syndicate, lead by Morgan Stanley and First Albany Corporation successfully marketed the bonds at an overall interest rate of only 4.61 percent. The bond sale was conducted to refund certain Build Illinois bonds issued during 1993-2000 with interest rates as high as 6.375 percent. In completing the sale, the State of Illinois will realize a savings of $9.1 million over the life of the bonds, an annual cost saving of approximately $500,000.

"The savings to taxpayers over the life of the bonds is significant," Ryan said. "Clearly we are committed to being good stewards of the People's money and are pleased with the assistance we received in that effort from First Albany Corporation and Morgan Stanley - especially while 20 floors of Morgan Stanley were buried in the rubble of the World Trade Center.

The Governor also announced the state plans to be back in the bond market with major issues next month. Illinois bonds will continue to be a good value because of the underlying strength and diversity of the economy of the state and cities such as Chicago.

Forthcoming issues will be for new monies to fund Governor Ryan's Illinois FIRST program as well as refunding of other past bond issues.