What are Costs of Issuance?
A Costs of Issuance (“COI”) are typically involved with bonds or Certificate of Participation. They can include: Lessor Fees, Trustee Fees, Underwriter Fees, Bond Counsel Fees, Escrow Fees, Trustee Fees and probably others. COI are included in the total financing amount on which the borrower pays interest. This compares to a typical lease transaction in which the fees are included in the interest rate.
These are the customary soft costs to be included in sizing a bond issue. Typical costs include but are not limited to fees for, attorneys, feasibility studies, advisors, bond underwriters, bond registrar/paying agent fees, legal publications and printing. Bondsize provides the user the choice of inputting a total dollar amount for these fees ( if known) or simply an estimated percentage of the issue size. SUGGESTION : For an initial quick look at a solution simply use a conservative percentage of par (i.e. in the 2-3 % range).
