Madison County Treasurer Kurt Prenzler announced that his office will invest $1.6 million in Granite City School District bonds.
“It’s a win-win,” said Prenzler. “We’re showing confidence in the Granite City School District, and the community in general.”
Prenzler says that investing locally creates jobs and strengthens the local economy. This is the first time that his office has invested in municipal bonds.
“It could have been owned by a New York City Investor,” said Prenzler. “For whatever reason, we saw that this was available to purchase. We saw this as an opportunity.“
Prenzler’s office is confident in the security of this investment.
“I’m not aware of any time at all that an Illinois school district hasn’t paid their debt. The taxpayers of that district are obligated to repay the bond,” said Doug Hulme, Chief Deputy Treasurer for the county.
The bond’s yield is 1.52 percent, which Prenzler calls “outstanding.” Additionally, it has an A- rating, and has only two years and three months remaining on the term of its debt.
“We generally invest our money in the short-term, that is less risky,” said Prenzler.
The investment came after the U.S. Steel Corporation announced that it’s considering temporarily closing its Granite City plant, costing over 2,000 jobs.
“With this investment, we stand with Granite City and its steelworkers," said Prenzler.