Illinois Buys $50 Million in Republic of Poland Bonds and Renews $10 Million in Israel Bonds
Illinois State Treasurer Michael Frerichs announced in Chicago on November 12 that his office has purchased $50 million in Republic of Poland bonds, saying the bonds provide a strong investment for the people of Illinois. He spoke at a news conference at the Polish National Alliance headquarters in Chicago.
Frerichs said Illinois has a unique relationship with Poland, noting that Chicago and the suburbs are home to one of the largest Polish populations in the world, with strong ties through trade, culture and sister-city relationships. The bonds were purchased to diversify the state's portfolio and achieve stable returns from a strong investment, in two purchases: $25 million for four years at 4.875 percent, and $25 million for five years at 4.625 percent. The yield outpaces a U.S. Treasury note by about 46 basis points and will earn $250,000 more for the state. The $50 million purchase, in addition to a $15 million purchase in March 2025, brings the state's total investment in Republic of Poland bonds to $65 million.
Under a law approved by the Illinois General Assembly, a nation must meet benchmarks for the state to purchase its bonds, including meeting its bond payment obligations for at least 25 years, which Poland has done. Treasurer's office guidelines also require the bonds to be rated in the three highest classifications of at least two rating services.
The Treasurer's office also announced it has renewed $10 million in Israel Bonds for five years at 6.17 percent, the highest rate in the last 25 years, outpacing a U.S. Treasury note by about 124 basis points and earning $620,000 more than five-year U.S. Treasuries. Frerichs said every investment must serve the people of Illinois, and that his responsibility is to protect taxpayers' money, maintain a stable and diversified portfolio, and earn the best returns possible under state law. He said the Israel Bonds decision was based on an assessment of the bonds as a stable, safe and high-performing investment, noting Israel has never defaulted on an interest or principal payment.
The state portfolio now holds $90 million in Israel Bonds and $65 million in Poland bonds. The $155 million in foreign bond investments represents 0.3965 percent of the $41.6 billion state portfolio. Investment decisions are based on the rate of return, stability and safety, and cash-flow needs for liquidity, while diversifying to mitigate credit and market risk, the office said.
(Source: Illinois State Treasurer's Office)
Source: Illinois State Treasurer's Office
Published by GSM · USA (original Chinese edition)
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