Contact: Frank Lester (919) 814-3811


Treasurer Folwell Announces Awarding of $600 Million in GARVEE Bonds

Bonds' Average Interest Rate of 2.39 Percent


(Raleigh, N.C.) - State Treasurer Dale R. Folwell, CPA, announced today the awarding of $600 million in Grant Anticipation Revenue Vehicle Bonds (GARVEE bonds). GARVEE bonds are revenue bonds that allow the state to pledge future federal highway funds to pay debt service. The funds will be used to accelerate construction on a variety N.C. Department of Transportation projects.

The issuance is the seventh in a series of GARVEE bond sales over the last 12 years. The GARVEE program is intended to be “evergreen," meaning additional projects will be added to the program and additional bonds issued over time. 

“We're very pleased to be able to help in providing funding for much-needed transportation projects across the state," said Treasurer Folwell. “I'm appreciative of the department's staff with the State and Local Government Finance Division and the Local Government Commission Board for their hard work on this issuance."

The bonds were awarded to an underwriting syndicate led by BofA Merrill Lynch. Barclays, Citigroup, J.P. Morgan, Loop Capital Markets and Wells Fargo Securities are also members of the syndicate. The overall yield on the bonds was 2.39 percent. The bonds have a 15-year maturity, and the program is structured to achieve approximately level debt service. Including the 2019 bonds, the total amount of GARVEE Bonds outstanding is approximately $1 billion.

The GARVEE bond issue was approved by the Local Government Commission and the Council of State on April 2, 2019. North Carolina's GARVEE program is rated A+ by Fitch, A2 by Moody's and AA by S&P.

The Department of State Treasurer's State and Local Government Finance Division handles the sale and delivery of all state and local debt and monitors the repayment of state and local government debt. More information can be found at http://www.nctreasurer.com/slg.

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