“The funding secures thousands of jobs for workers and businesses in the construction and related industries rebuilding and improving the Illinois Tollway system,” said Acting Executive Director Michael T. King. “And with the Build America Bonds, we’re providing this much-needed economic stimulus at a savings for Tollway customers.”
The Illinois Tollway Build America Bonds—with 15- and 25-year maturities—were all issued at a net rate of 5.293% for the 2024 maturity and 6.184% for the 2034 maturity. After accounting for federal support the net cost to the Tollway is 3.44% and 4.02%, respectively.
Under the Build America Bond program, bond issuers can sell taxable bonds, but use the proceeds to finance infrastructure projects eligible for tax-exempt bond funding. The federal government pays Build America Bond issuers a cash subsidy equal to 35% of the interest cost.
“With this sale, the Illinois Tollway’s infrastructure improvement program will continue to provide customers with safe, efficient and improved roadways at a good value,” said King.
The Tollway’s congestion relief program is in its fifth year and is under budget and on schedule. With the bond sale the Tollway has completed $3.3 billion of the expected $3.5 billion issuance, with the remaining $250 million anticipated to be issued later this year.
The program is rebuilding/restoring nearly all of the system’s 50-year-old roads, widening and adding lanes to many miles of existing roads, converting 20 mainline toll plazas to barrier-free open-road tolling and extending I-355 south to I-80 in Will County.
