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5/12/2020 Treasury Releases Build America Bonds Update U.S. DEPARTMENT OF THE TREASURY Press Center Treasury Releases Build America Bonds Update 2/8/2010 To view or print the Microsoft Excel content on this page, download the free Microsoft Excel Viewer. TG-538 Build America Bonds Provide More Than $70 Billion Nationally to Date Report Details Cumulative, State by State Bond Issuances Recovery Act Bond Program Boosts Economic Development WASHINGTON – As part of the effort to increase transparency in government and maintain accountability of funds allocated under the American Recovery and Reinvestment Act (Recovery Act), the Treasury Department today provided another comprehensive update on issuances of the Build America Bonds program, including state-by-state data. The Build America Bonds program is a new financing tool created by the Recovery Act to allow state and local governments to obtain much-needed funding, at lower borrowing costs, for projects such as construction of schools and hospitals, development of transportation infrastructure, and water and sewer upgrades. Build America Bonds are designed to appeal to a broader set of investors than traditional tax-exempt bonds. Under the Build America Bonds program, the Treasury Department makes a direct payment to the state or local governmental issuer in an amount equal to 35 percent of the interest payment on the Build America Bonds. Potential investors include pension funds that traditionally do not hold tax exempt bonds and foreign investors. These investors have been important additions to the market for municipal debt. The Obama Administration's FY 2011 budget proposes to make Build America Bonds permanent with a 28 percent subsidy rate that is estimated to be revenue neutral. The budget also proposes expanding the eligible uses of Build America Bonds, allowing them to support financing for nonprofits and a wider range of municipal borrowing. "Expanding and making permanent this successful Recovery Act program will provide certainty and improve the long term functioning of the municipal bonds market," said Alan B. Krueger, Assistant Secretary for Economic Policy at the Treasury Department. Early market reception for Build America Bonds has been very positive. Between the program launch on April 3, 2009 and January 31, 2010: · There have been $70.8 billion in Build America Bond issuances; · Build America Bonds now constitute about 19.2 percent of the municipal bonds market; and · There have been a total of 834 separate issues of Build American Bonds by local or state governments in 47 states. The data contained in this report are compiled by the Department of the Treasury using data available from Bloomberg and are not based on filings with the Internal Revenue Service. Table 1: BAB Issuances and Volumes Time Period 2009: April May June July August September October November Number Issues Volume $Millions 12 41 85 70 107 112 111 105 Percent of Muni Total 7,632 2,699 4,968 3,532 9,632 6,795 12,940 7,482 20.1 8.3 10.9 12.9 24.5 20.7 29.6 16.1 https://www.treasury.gov/press-center/press-releases/Pages/tg538.aspx 1/2 5/12/2020 Treasury Releases Build America Bonds Update December April to December 2010: January 98 8,016 27.8 741 63,697 19.0 93 7,070 21.3 834 70,767 19.2 Since BABs inception: April 2009 to January 2010 Table 2: BAB Issuances and Volumes by State as of 1/31/2010 State Number of Issues AK AL AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD MI MN MO MS NC ND NE NH NJ NM NV NY OH OK OR PA SC SD TN TX UT VA VT WA WI WV WY Total Total Amount Issued ($Millions) 2 160 4 202 13 645 70 16,261 19 1,486 5 844 3 956 1 179 27 2,922 7 703 2 91 30 497 1 72 94 4,853 17 751 31 855 32 1,436 7 532 5 1,963 16 1,431 35 1,394 50 457 31 1,484 2 162 7 698 4 25 16 378 2 225 16 2,791 3 96 8 1,283 18 6,540 36 2,156 12 299 2 22 21 1,996 16 479 8 143 15 344 34 7,194 19 1,330 17 1,468 1 41 28 2,035 44 835 1 38 2 13 834 70,767 ### REPORTS A complete list of issuances https://www.treasury.gov/press-center/press-releases/Pages/tg538.aspx 2/2
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