Chapter 5. Sale of Municipal Debt

The sale of municipal debt by a public agency issuer is often the culmination of years of capital and financial planning. A fundamental decision for the public agency and its financing team is how the bonds will be offered to the market, referred to as the “method of sale.” Municipal debt securities can be sold to investors in a public offering or a private placement transaction. The method of sale can be directed by statute or public policy or simply by cost. This chapter describes the method of sale options available to public agency issuers and the factors to be considered when selecting the method of sale, including costs of issuance, credit ratings, and marketing considerations.