Business Notes Investments

Council members of the Jicarilla Apache tribe were jubilant last week as they gathered to discuss the use of 55,000 acres of new tribal land. The Jicarilla Apaches had paid for the land with $30.2 million raised by selling tribal revenue bonds, the first offering under a 1983 federal law that permits Indian tribal governments to enter the municipal bond market. Said Jicarilla President Leonard Atole: "We desired this fertile land for future economic development and for the housing needs of our people. The bond issue allows us to manage our financing needs without relying on the Federal Government."

The Apaches engaged Boettcher & Co., a Denver investment banking firm, for the deal. The tax-exempt bonds, which carry interest rates of 9.1% and 9.6%, are backed by revenues from Jicarilla oil and gas wells, which total about $20 million annually, plus $108 million of other financial assets. After Standard & Poor's officials met with members of the tribal council last month, the credit rating firm gave the bonds an A rating. That is two notches below the top grade of AAA, but higher than the BBB+ rating given bonds issued by Chicago or New York City.