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When financing a project through bond issuance, one of the most important early steps is developing the professional team. From developing the scope of the project, to undertaking the legal requirements, to selling the bonds and collecting the proceeds, each complex, important step in the process requires a coordinated team effort.

Under the direction of the issuer, the professionals on these teams, often referred to as “working groups,” work in tandem with one another. Typically, the roles on a bond issuance working group include:

  • Owner – The public entity (i.e. – school, county, city, utility, etc.) that issues the bonds to make improvement to its facilities.
  • Architect/engineer – Develops construction project scope and design
  • Project manager and/or construction manager – Develops cost estimates and oversees project
  • Local attorney – Helps facilitate local approvals, publications, recording of documents, etc.
  • Municipal advisor – Develops plan of finance and assists with bringing bonds to market
  • Bond counsel – Outlines legal requirements for the project and provides legal opinion for the financing
  • Trustee, registrar and paying agent – May hold bond proceeds and make payments to contractors throughout project; assists with making bond payments to bondholders (investors)
  • Underwriter – purchases the issuer’s bonds to sell to its clients (investors)

The above list is only a brief summary the working group’s roles; some may be expanded or limited depending upon the needs of each project. Depending on the project, you may require more or fewer professionals in your working group.

Stay tuned for more articles in this series as we discuss the bond issuance process and considerations when issuing bonds. View part 1 of this series here.

For more information on project financing or capital planning, please contact us.

Lindsay Simonetto
Operational reviews: aligning resources with strategy
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