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CDFA Bond Finance Update - March 19, 2019

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Bond Finance Update
March 19, 2019
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CDFA Bond Finance Update


New TEFRA Regulations for PABs Set to Go into Effect
Beginning April 1, 2019, issuers of qualified PABs will be governed by a new set of TEFRA regulations. The Final TEFRA Regulations, which stem from the Treasury Department's 2017 Proposed Regulations, retain many of the procedures and requirements described in the 2017 Proposed Regulations.

Reps. Blumenauer and Walorski Introduce the Move America Act
Reps. Earl Blumenauer (D-OR) and Jackie Walorski (R-IN) have introduced the Move America Act, which would support national water and transportation infrastructure. The bill creates a new category of PABs called Move America Bonds, and creates Move America Credits to leverage private equity investment at a lower cost for states.

A Brief Guide to the 2018 Amendments to Continuing Disclosure Requirements
There are a number of ambiguities regarding implementation of the Amendments. It is not certain when or if the SEC will provide additional guidance and market practices will likely vary during the early stages of implementing the Amendments. Butler Snow LLP has authored this brief guide on the new amendments.

ND Fights Floods with $2.75B Project
After years of delays, a $2.75 billion plan to build a channel for flood waters around Fargo, ND, seems ready to move forward. A specially created local government entity, called the Diversion Authority, would be primarily responsible for building the channel, while various private entities, the state of ND, and the federal government will help finance and/or fund the project.

Fort Lauderdale, FL Voters Approve Bonds for Parks and Police HQ
Fort Lauderdale parks in every neighborhood will be spruced up, and a modern, high-tech new police headquarters will replace the tired 1950s station, after voters overwhelmingly agreed to raise property taxes to pay for two bonds. About 64% of voters supported the $100 million police bond issue, about 60% supported the $200 million parks bond.

Atlanta, GA Issues Environmental Impact Bond for Green Infrastructure
Environmental Impact Bonds (EIBs), like social impact bonds, are a type of financing that provides different levels of return for investors based on how well the projects funded by the bond perform. If a green infrastructure intervention is more effective than expected, investors get a greater return; if less successful, the return is lower.

Santa Fe, NM Wastewater Project Touted as a First for Green Bonds
It was the first city in New Mexico to sell green bonds, the first in the state to have bonds certified as green by an international bonding agency in London, and the first in the world to have the construction of an anaerobic digester financed by green bonds.

New Guide Released That Explains Bonds vs. Direct Financing for C-PACE
C-PACE Alliance has released a guide on C-PACE and the use of bonds vs. direct financing for C-PACE programs. The guide explains that direct financing typically offers property owners lower costs and less complexity, while bond funding promotes better liquidity and potentially offers lower interest rates over time.

Commentary: Mayors in Support of Advance Refundings
Mayor Steve Benjamin of Columbia, SC argues that the ability of municipalites to issue advance refunding bonds created billions of dollars in savings to taxpayers and communities, and therefore Congress should act immediately to pass legislation reinstating the advance refundings provision.

Market Reports

Weekly Rate Update
KPM Financial | Mar. 18 | Bond Finance | Bond Finance\Market Reports

Weekly Market Outlook
Moody's | Mar. 14 | Bond Finance | Bond Finance\Market Reports

Weekly Capital Markets Update
Wye River Group | Mar. 8 | Bond Finance | Bond Finance\Market Reports

Upcoming Events
CDFA Federal Policy Conference

CDFA - PFM Capital Markets Webinar Series - Capital Markets Back to the Future
April 16, 2019 - 2:00PM - 3;30 PM Eastern
Technology is changing the world from artificial intelligence, the rise in Blockchain technology, to self-driving cars. Evolving technology will require bond issuers to think strategically around issuing long-term debt for potentially obsolete projects. For example, as self-driving cars become more readily available, what impact will that have on future infrastructure projects like parking garages and toll roads? This session will focus on strategic forecasting methods and how technological advances play into long term bond financing decisions.

News from The Bond Buyer

The latest municipal finance headlines from The Bond Buyer.

Revenue Bond Deal Funds Electric Transmission Network
The Lower Colorado River Authority, one of the largest wholesale electricity providers in Texas, will take out commercial paper and callable bonds with $369.7 million of revenue refunding bonds. The bonds issued for LCRA's Transmission Services Corp. will retire about $300 million of commercial paper and private notes.

Sen. Schumer Pushes for Solution to Stalled Gateway Project
Complaining of obstructionist politics, Sen. Chuck Schumer has announced that he will propose a legislative solution to jump-start the stalled Gateway project. The Gateway Project is a $12.7 billion plan to upgrade the 110-year-old rail tunnel that links Manhattan and New Jersey.

USDOT Evaluating New Bond Request for Brightline/Virgin Trains
The U.S. Department of Transportation has confirmed that it is considering a new round of PABs for Brightline/All Aboard Florida. The USDOT is also continuing to review a $3.7 billion low-interest direct loan sought by All Aboard Florida through the Railroad Rehabilitation & Improvement Financing Program.

CDFA is proud to partner with The Bond Buyer as our Official Media Sponsor. Read more about this partnership and all of its benefits here.

Bond Finance Headlines

Fannie Mae Takes the Lead on Making U.S. More Energy Efficient
Yahoo Finance | Mar. 14 | Bond Finance | Energy Finance | Green Finance

Fayetteville, AR Wants $3M Bond to Boost Workforce
Northwest Arkansas Democrat Gazette | Mar. 13 | Access to Capital | Bond Finance | Economic Development

NYU Borrows $83M in Green Bonds
Washington Square News | Mar. 12 | Bond Finance | Energy Finance | Green Finance | Water Finance

SC Episcopal Home at Still Hopes Leverages $91M in JEDA Bonds
SC JEDA | Mar. 12 | Access to Capital | Bond Finance | Community Development | Member News

MT Bill Proposes $80M in Bonds for Infrastructure
KXLH | Mar. 11 | Bond Finance | Infrastructure Finance | Water Finance

Elgin, TX Approves $10M Bonds for Water, Wastewater, Street Improvements
Statesman | Mar. 8 | Bond Finance | Infrastructure Finance

Duke Energy Bonds $600M to Fund Solar Project
Solar Power World | Mar. 7 | Bond Finance | Energy Finance | Green Finance

$14M Bond Financing for Westbrook, ME Project Will Upgrade Transportation Links
Mainebiz | Mar. 7 | Bond Finance | Infrastructure Finance | Tax Increment Finance (TIF)

Payson, UT Receives $9M in Bonds for Water Projects
Daily Herald | Mar. 6 | Bond Finance | Infrastructure Finance | Water Finance

Picayune, MS Approves $6M Bond to Maintain Streets
Picayune Item | Mar. 6 | Bond Finance | Infrastructure Finance

Senate Leadership Unveils Tax Extender and Disaster Relief Act
U.S. Senate Committee on Finance | Mar. 5 | Bond Finance | Tax Credits

Santa Fe, NM Sells Green Bonds for Water Treatment Plant
Santa Fe New Mexican | Feb. 28 | Bond Finance | Green Finance | Water Finance

Becker, MN Wants Bonding Money for Industrial Park
KNSI Radio | Feb. 25 | Bond Finance

Investors Scrambled to Get in on Verizon's $1B Green Bond Deal
GreenBiz | Feb. 25 | Bond Finance | Energy Finance

Public Buildings Renewal Act Reintroduced in Congress
U.S. Congress | Feb. 25 | Bond Finance | Public-Private Partnership (P3) Financing

ME Speaker Proposes $5M Bond to Improve Rivers, Streams
Connecticut Post | Feb. 24 | Bond Finance

Courtney Knight Re-Launches Capstone Municipal Advisors LLC
Capstone Municipal Advisors LLC | Feb. 20 | Bond Finance | Member News

MT City Issued Bonds for Water Utility
Missoulian | Feb. 20 | Bond Finance | Infrastructure Finance | Water Finance

MI Energy Company Issues $650M in Green Bonds
Power Engineering | Feb. 19 | Bond Finance | Energy Finance

Highlights from the Online Resource Database

Growing the U.S. Green Bond Market
Agriculture Finance | Bond Finance | Energy Finance | Green Finance | Infrastructure Finance | Water Finance
The United States' deteriorating infrastructure is woefully underprepared to address the challenge of adapting to climate change. The funding gap has presented an opportunity for global capital markets to create investment vehicles that provide long-term yield, while also helping communities mitigate or adapt to the effects of global warming. One such vehicle that has arisen in the past decade is the green bond: a traditional fixed income security with an additional layer of environmental sustainability.

The Council of Development Finance Agencies is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private, and non-profit entities alike. For more information visit CDFA.net or email info@cdfa.net

For more information about sponsoring one of CDFA's electronic newsletters, please contact CDFA or call 614-705-1300.

Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300

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