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.