Navajo Nation Issues First Bonds
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The Navajo Nation plans to issue its first bonds to raise funds for local infrastructure projects. Unlike their state and municipal government counterparts, tribes typically face more challenges borrowing money.
This move may pave the way for other tribes looking for economic stimulus.
The $120 million sale would be the biggest by a tribal government that isn’t backed by gaming revenue. Instead, the Navajo Nation would use revenue from oil, gas and coal royalties to build shopping centers, restaurants, office parks and industrial complexes. The Navajo Nation has more than $1 billion in reserves.
"The tribe has been able to get a fairly solid credit rating, so it should be attractive to investors," said Gavin Clarkson, an expert intribal finance who teaches at the University of Houston Law Center. "And at the end of the day, it should make a major difference to the lives of tribal members."