Raleigh, N.C. -- State Treasurer Dale R. Folwell, CPA, through the State and Local Government Finance Division, announced today the issuance of approximately $106 million of general obligation refunding bonds. The bonds were issued and sold to take advantage of lower interest rates, thus reducing interest costs for taxpayers. The bonds were purchased by Citigroup Global Markets, Inc. at an interest rate of 1.39% saving taxpayers $15 million in debt service costs.
“We are very pleased with the refunding,” said Treasurer Folwell. “We were able to secure an interest rate well below the ‘AAA’ indices. The favorable rate reflects the fiscally conservative management of our state by the General Assembly. It is also the result of the taxes paid by the hard-working citizens and businesses that keep our credit quality so high. I’d also like to thank the bond purchasers and all those whose efforts contributed to this successful result.”
Folwell added that by reducing the cost of servicing this debt, the state will have more funds available for teachers, law enforcement, roads and other core functions of state government.
This sale is the first of three that will occur over the next 60 days.
Just last week, all three major national bond rating agencies re-affirmed the state’s “AAA” bond rating. North Carolina is one of only 12 states to earn the “AAA” bond rating by all three rating agencies.
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