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January 30, 2013

For Immediate Release

​​Treasurer Cowell Saves NC Taxpayers  $45 Million with Bond Sale

RALEIGH, NC – State Treasurer Janet Cowell awarded $319.26 million of general obligation refunding bonds today. The refunding will save the state approximately $45.3 million in debt service costs. Bonds are similar to home mortgages, in that government projects can be refinanced when interest rates are lower.

“One of the responsibilities I have as State Treasurer is to identify these types of refinancing opportunities. The current market allowed us to take advantage of low financing costs to save money for North Carolina taxpayers,” said Cowell. “The savings generated by the sale of these bonds helps us reduce our debt service costs and reinforces our AAA bond rating.”

The bonds were originally issued in 2003 through 2007 and used to pay for transportation, university and community college projects. The bonds were awarded to Citigroup Global Markets Inc., who submitted a bid of 1.84%, the most favorable of the eight bids received.

The State’s AAA bond rating was recently reaffirmed by all three major national rating agencies. Currently, all of the State’s debt ratios remain at or below the median levels for the State’s peer group comprised of all states rated “triple A” by all three rating agencies.

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