KLC Expands Bond Program to Other State Leagues

The Tennessee Municipal League (TML) became the first municipal league to participate in the Kentucky League of Cities (KLC) newly expanded bond program. Since 2010, the Kentucky Bond Corporation (KBC) has empowered Kentucky communities with long-term bond issuances using the program’s AA- rating. On June 25, 2024, TML’s Tennessee Municipal Bond Fund (TMBF) successfully closed its first bond issuance, becoming the first additional issuer under the KBC program.

The momentous deal involved a $16,975,000 general obligation bond for Chapel Hill, Tennessee, to construct a new sewer plant and support facilities. Thanks to the KBC program’s adaptability and inventiveness, KLC expedited financing and allowed the borrower to bypass a full credit rating process for the debt issuance. With this successful bond closing, TML and TMBF paved the way for other leagues to leverage KBC’s credit rating, enabling their members to secure competitive long-term financing.

The benefits of using the KBC program in other states include:

• No Out-of-Pocket Fees: Access funds with zero upfront costs or cumbersome paperwork
• Streamlined Financing: Skip the traditional credit process and finance 100% of your project’s total cost
• Tailored Solutions: Receive customized programs to meet your members’ unique needs and goals
• Professional Team: Established legal, financial, and program experts ready to guide or collaborate with your league’s financing team

Tennessee Municipal League Executive Director Anthony Haynes expressed his excitement. “I am thrilled TMBF partnered with our counterparts in Kentucky for this exciting new chapter in both our leagues’ histories. While we may compete on the sporting fields, it is great to see Kentucky and Tennessee find opportunities to aid each other in delivering new opportunities to our members. We look forward to further expanding this partnership into other communities across Tennessee.”

Wade Morrell, president and CEO of the Tennessee Municipal Bond Fund, agreed. “The expansion of the KBC program into Tennessee offers borrowers in Tennessee a new way to borrow money long-term while not impacting our existing programs,” he added. “Cities and counties in Tennessee can better plan and budget for capital projects with more certainty over the long term while providing the stability they need to effectively manage their resources and invest in their communities’ futures. We are grateful for the partnership with the KLC program and look forward to seeing the transformative impact it will have on our borrowers and the communities they serve."

KLC Executive Director/CEO J.D. Chaney applauded the successful bond closing in Tennessee and encouraged other leagues to explore what KBC offers. “Helping a sister league meet the needs of its members is a great feeling,” Chaney said. “KLC is honored to work with TMBF to offer this program to our neighbors. We hope this is just the beginning as we all work together to help cities and municipal entities accomplish their goals and strengthen their communities.”

To learn more about the KBC program, contact KLC Financial Services Manager Steven Pickarski.