Developers behind the roughly 23-acre, US$6bil project are issuing the tax-exempt, non-rated debt through a Wisconsin financing authority. — Bloomberg
MIAMI: Miami Worldcentre, an urban renewal project in the city’s downtown, is poised to borrow US$245mil in the municipal-bond market as it moves to finance the next phase of a venture that is almost two decades in the making.
Developers behind the roughly 23-acre, US$6bil project, one of the biggest such ventures in the United States, are issuing the tax-exempt, non-rated debt through a Wisconsin financing authority.
The Florida city has seen an influx of wealthy residents and investment the past few years amid the pandemic, boosting housing prices.
But the bond deal is still considered risky, in part because as a conduit deal, the securities don’t have the full faith and credit backing of a local government or agency.
The offering document said repayment is “speculative in nature” and involves a high degree of risk.
In the borrowers’ favour, it’s an opportune time to sell such debt. High-yield munis are having a solid year, gaining as the rest of the state and local-bond market has declined. That should set the stage for solid investor appetite, said Daniel Solender at Lord Abbett & Co. — Bloomberg
