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Indianapolis Issues $206 Mln in Airport Bonds

By Munichain News Desk
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The Indianapolis Local Public Improvement Bond Bank sold $205.7 million in bonds to fund improvements at Indianapolis International Airport (IND) and refund previously issued securities.

The bank sold the bonds in two series. The tax-exempt Series 2023I-1 bonds, consisting of $67.9 million, mature between 2026 and 2053, yielding between 2.68% and 4.16%. The taxable Series 2023I-2 bonds, consisting of $137.8 million, mature between 2025 and 2053, yielding between 3.44% and 4.59%. The securities received a rating of A1 from Moody’s Investors Service and A from Fitch Ratings.

“The rating reflects the mid-tier air trade service area, which is well-anchored and supported by a midsized and growing origination & destination (O&D) traffic base that is complemented by cargo activity from FedEx’s second largest hub,” Fitch analysts wrote.

The issuance will help fund the airport’s five-year capital plan, which calls for $1.2 billion in spending through 2028. The bond proceeds will finance capital projects including runway reconstruction, taxiway lighting, parking lot rehabilitation, and energy resilience improvements.

The proceeds will also refund airport bonds issued in 2014.  

The bonds are limited obligations of the bank, payable by a pledge of the Indianapolis Airport Authority’s net revenues.

Ramirez & Co, Inc served as lead underwriter on the issuance, purchasing the bonds for more than $222 million. The price reflected a premium of $17 million. Sycamore Advisors LLC and Frasca & Associates, LLC acted as municipal advisors.


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