The Maryland Industrial Development Financing Authority in late May issued $36 million of taxable bonds to finance an 11-story office building in downtown Baltimore.

Lehman Brothers privately placed the bonds with six institutional investors. The bonds carry a letter of credit from the Toyo Trust and Banking Co. to cover the construction phase of the project. The bonds are insured by Capital Markets Assurance Co.

Security also includes a 10-year lease from the federal government. If the government decides not to renew the lease, Baltimore has agreed to enter into a 15-year lease for the office space.

Mark L. Wasserman, the state's secretary of economic and employment development, said the project is "critical" in revitalizing the Howard Street corridor in Baltimore.

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