Louisiana Green Fuels Fund Updates > 2021 Private Activity Bond Allocation
2021 Carry-Forward Private Activity Bond Allocation to LGF Project
In early 2021, the Louisiana Green Fuels Project was awarded $200mm in Private Activity Bond issuance carry-forward allocation for financial year 2020 by the State of Louisiana, by far the largest single carry-forward allocation to any project in the state. This clearly demonstrated the priority support provided to the LGF project by Governor John Bel Edwards given the project’s positive environmental, economic, and social impact for the State of Louisiana.
Last month Governor Edwards issued the executive order for financial year 2021’s carry-forward allocation. The State received $1.3bn in qualified project applications for $393mm available for "use it or lose it" allocation. LGF was awarded $250mm of the $393mm available, which means it was once again the single largest allocation and accounted for over 60% of the entire amount available.
You may recall that Private Activity Bonds are a municipal bond wrapper that allows the project to issue debt that will be exempt from Federal tax. This makes the bonds extremely attractive to taxable institutional investors in particular and helps de-risk the debt component of the construction capital the LGF project will need to raise in 2023.
The size of both the 2020 and 2021 carry-forward allocation are a strong statement of support for the project from the State of Louisiana and means LGF is still very much on track to have most, if not all, of the expected project construction bonds wrapped by the Private Activity Bond wrapper.
Last month Governor Edwards issued the executive order for financial year 2021’s carry-forward allocation. The State received $1.3bn in qualified project applications for $393mm available for "use it or lose it" allocation. LGF was awarded $250mm of the $393mm available, which means it was once again the single largest allocation and accounted for over 60% of the entire amount available.
You may recall that Private Activity Bonds are a municipal bond wrapper that allows the project to issue debt that will be exempt from Federal tax. This makes the bonds extremely attractive to taxable institutional investors in particular and helps de-risk the debt component of the construction capital the LGF project will need to raise in 2023.
The size of both the 2020 and 2021 carry-forward allocation are a strong statement of support for the project from the State of Louisiana and means LGF is still very much on track to have most, if not all, of the expected project construction bonds wrapped by the Private Activity Bond wrapper.
