Ngobeni, Jason2012-08-132012-08-132008-05https://hdl.handle.net/10986/10609In 2004 the city of Johannesburg sold two municipal bond issues, among the very few such issues in Africa. The bond issues marked the city's recovery from near bankruptcy in the mid-1990s. They have been followed by several more as well as an even more ambitious capital financing program. Preparing for a first-time bond issuance is complicated and time consuming. Johannesburg navigated its way with remarkable success by asking the right questions and insisting on credible answers. Its path offers guidance and insights to other local governments considering the use of municipal bonds to finance infrastructure.CC BY 3.0 IGOACCOUNTINGAMORTIZATIONAPARTHEIDASSETSBANK LENDINGBANK LOANBANK LOANSBANKRUPTCYBASIS POINTSBOND FINANCINGBOND ISSUANCEBOND SALESBORROWINGSCAPITAL EXPENDITURESCAPITAL INVESTMENTCAPITAL MARKETCAPITAL MARKETSCASE OF DEFAULTCASH FLOWCOLLATERALCOLLATERAL REQUIREMENTCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL LENDINGCOMMERCIAL LOANSCONCESSIONSCONTINGENT LIABILITIESCREDIT ENHANCEMENTSCREDIT GUARANTEECREDIT QUALITYCREDIT RATINGCREDIT RATINGSCREDIT RISKCREDITWORTHINESSDEBTDEBT HOLDERSDEBT ISSUEDEBT SERVICEDEVELOPMENT BANKDOMESTIC CREDITDOMESTIC CREDIT RATINGDUE DILIGENCEECONOMIC DEVELOPMENTEMERGING MARKETESCROWESCROW ACCOUNTEXISTING DEBTEXPENDITURESEXTERNAL CREDITEXTERNAL CREDIT ENHANCEMENTFINANCE CORPORATIONFINANCESFINANCIAL ADVISORFINANCIAL INTERMEDIARIESFINANCIAL MANAGEMENTFINANCIAL STATEMENTSFINANCING NEEDSFREE BONDFUTURE DEBTGENERAL OBLIGATIONGENERAL OBLIGATION BONDSGOVERNMENT BORROWINGGOVERNMENT SECURITIESGROUP OF INVESTORSINDEBTEDINFRASTRUCTURE FINANCEINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE PROJECTSINSTITUTIONAL INVESTORSINTEREST COSTSINTEREST RATEINTEREST RATESINTEREST RATES ON BONDSINTERNATIONAL FINANCEINVESTINGINVESTMENT FUNDINVESTMENT PORTFOLIOSINVESTMENT REGIMELENDERLIABILITYLOCAL GOVERNMENTLOCAL GOVERNMENTSMARKET CONDITIONSMARKETINGMATURITIESMATURITYMUNICIPAL ASSETSMUNICIPAL BONDMUNICIPAL BOND ISSUEMUNICIPAL BOND ISSUESMUNICIPAL BOND MARKETMUNICIPAL BONDSMUNICIPAL DEBTMUNICIPAL INVESTMENTMUNICIPAL SECURITIESNATIONAL TREASURYOUTSTANDING DEBTOUTSTANDING LOANOUTSTANDING LOANSPARTIAL CREDITPARTIAL CREDIT GUARANTEEPORTFOLIOPOST OFFICEPREPAYMENTPREPAYMENT PENALTIESPRIVATE BANKPRIVATE INFRASTRUCTUREPRIVATE LENDERSPRIVATE PLACEMENTPROCUREMENTPUBLIC POLICYPUBLIC-PRIVATE PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSREPAYMENTREPAYMENT PERIODREPAYMENTSRESERVERETURNREVENUE BONDSRISK OF DEFAULTSALESAVINGSSAVINGS RATESSECONDARY MARKETSOVEREIGN GUARANTEESTOCK EXCHANGESUSTAINABLE DEVELOPMENTTECHNICAL ASSISTANCETERM CONTRACTTRACK RECORDTRADINGTRANSACTIONTREASURIESTRUE COSTTRUSTEEUNDERWRITERUNDERWRITERSVALUABLEWORTHWorld Bank10.1596/10609