Opponents are wanting state financing officials to block a $900 million tax-exempt bond issue proposal tied to Hyundai’s planned $5.8B steel manufacturing facility in Ascension Parish. The pushback came during a public hearing held last week by the Louisiana Public Facilities Authority on plans to issue up to $900 million in exempt-facility revenue bonds on behalf of Hyundai-POSCO Louisiana Steel.
The proceeds would finance or reimburse costs associated with constructing and equipping portions of Hyundai’s mill. The tax-exempt structure could allow Hyundai to borrow at a lower interest rate than it would through conventional taxable borrowing.
The bonds, according to LPFA, would not constitute debt of LPFA or the state and would be secured solely by payments from Hyundai. The proposal will soon go before the Louisiana State Bond Commission. It would then return to LPFA for final approval at a later date.
