Final Bond Sale Puts Total Savings for North Carolina at $133 Million ​Treasurer Expects Savings to go Toward Solvency Reserve Fund

Raleigh, N.C. -- State Treasurer Dale R. Folwell, CPA, through the State and Local Government Finance Division (SLGFD) and with the approval of the North Carolina Council of State, announced the completion of its third refunding of bonds within the last six weeks. 

The most recent refunding was of more than $243 million in GARVEE (Grant Anticipation Revenue Vehicles) bonds with almost $225 million Refunding Bonds issued, resulting in $19 million in debt service savings. The bonds were issued and sold to lock in lower interest rates.

With the completion of the GARVEE bonds’ refunding, Treasurer Folwell and the SLGFD have refinanced more than $1 billion in general and limited obligation bonds and GARVEE bonds, resulting in the reduction of debt service costs by more than $133 million. 

“The refunding of the GARVEE bonds will allow additional resources to be available for important transportation projects across the state,” said Folwell. “The refunding of the general and limited obligation bonds will provide capital for the Solvency Reserve Fund. Legislation establishing the fund has already been passed by the N.C. House, and I expect approval soon by the N.C. Senate. Once it is passed, it will be the first step in reducing the state’s $50 billion in unfunded healthcare and pension liabilities.”

GARVEE bonds provide financing for various transportation projects and the State Transportation Improvement Program. Debt service on the bond is then paid from federal reimbursements to the state.