Navajo Nation Growth

America’s largest Indian tribe, the Navajo Nation, is planning to stimulate growth in their territory by issuing a bond offering of $120 million. The bond offering will finance over 50 projects on the reservation held in Arizona, New Mexico, and Utah according to Navajo officials.

In May Standard and Poor awarded the Navajo Nation an A rating, citing that the territory had strong natural resources along with cash reserves, aiding the sovereign area  in obtaining a better credit rating than their California neighbors.

Officials are looking to spur both economic and labor growth within the reservation which is populated by over a third of citizens below the poverty line. The project looks to create dozens of convenience stores, several fast food restaurants, shopping centers, industrial complexes, tourist center, along with a radio station. Early estimates show that the project will generate $3.2 million in annual income for the reservation along with over 6,000 jobs.

Some analysts believe that this will catapult the Indian Country as a domestic emerging market while others believe that traditional loaning practices through financial institutions would be a better option (due to the rate differences). Nonetheless this is just more evidence that the economy, from coast to coast (or reservation), continue to push to create an environment for investment and growth.

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