5.4 Costs of Issuance

5.4 Costs of Issuance

The costs of issuance (COI) are the expenses paid by or on behalf of the issuer in connection with the sale and issuance of publicly offered bonds. For some types of bonds, the COI can be paid from the proceeds. For other types of securities (e.g., qualified private activity bonds) the COI, including the underwriter’s discount, borrowed as part of the issue are limited to 2% of the proceeds.