Southwest Ohio Regional Bond Fund
A Bond Fund is a credit-enhancement vehicle supported by a system of common program reserves and designed to achieve an investment grade rating. This tool gives companies access to long-term, fixed rate financing to fund facility expansion, increase manufacturing capacity, and purchase new equipment.
A number of Ohio port authorities operate bond funds. Port authority bond funds achieve investment-grade ratings through a system of pooled reserves – they are also secured by a combination of individual company credits, guarantees, mortgages and security agreements. Some are also secured by TIF or special assessment revenues.
The Port of Greater Cincinnati Development Authority is an issuer of bonds for the Southwest Ohio Regional Bond Fund, rated BBB+ by Standard and Poor's, created in 2015 from the expansion of the Dayton-region Port Authority Bond Fund. The Southwest Ohio Regional Bond Fund serves growing companies in 14 counties. Through this program, we can offer regional companies and developers access to project capital at terms and rates that cannot be obtained through traditional lending channels.
This program may finance allowable project costs with loans typically ranging in size from $2.0 million to $6 million. This program can be combined with the Ohio Enterprise Bond Fund and other Port authority bond funds for larger projects.
- Industrial or Commercial companies, including manufacturing, distribution, housing and education
- Infrastructure Projects (TIF & Special Assessment Projects, including PACE)
- Non-profit or 501 c(3)
- Land and/or building purchase
- Building construction and/or renovation costs
- Machinery & equipment purchase and installation
- Long-term leasehold improvements
- Capitalized costs directly related to a fixed-asset purchase
Role of the Port Authority
The Port Authority is one of two eligible issuers of Southwest Ohio Regional Bonds Fund debt. As the issuer of the debt, the Port Authority is responsible for due diligence, negotiation of deal terms and documentation and post-issuance compliance.
The broad development powers afforded to port authorities allows us to issue taxable or tax-exempt bonds through these bond funds to finance a variety of economic development projects. As issuer of the debt, we maintain professional administrative capabilities and full partnership in each deal.