(Raleigh, N.C.) – State Treasurer Dale R. Folwell, CPA, and the State and Local Government Finance Division (SLGFD) announced today that almost $500 million in North Carolina Turnpike Authority (NCTA) Bond Anticipation Notes (BAN), Series 2020 notes were recently sold. NCTA received a yield of 0.9% on the BANs, which translated into a $12.5 million savings.
The BANs saved NCTA money by delaying drawing from a higher cost loan approved through the federal Transportation Infrastructure Finance and Innovation Act for the first four years
Created in 2002, the NCTA works to advance the building of needed transportation improvements by funding some of those projects by using tolls.
“The issuance of these notes will allow the Turnpike Authority [NCTA] to draw on the funds as they need them and only pay interest when they actually use the money,” said Treasurer Folwell. “It works like a line of credit. It’s much more efficient and saves taxpayers from paying interest on money that is just sitting in an account. These savings are especially important as turnpike revenues have dropped since March due to the COVID-19 pandemic.”
The proceeds of the Series 2020 notes will be used to provide interim financing for a portion of the costs of land acquisition, design, construction and equipping of the next phase of the Triangle Expressway System known as Complete 540 – Phase 1. It consists of the extension of the Triangle Expressway for approximately 17.8 miles from the NC 55 Bypass in Apex to I-40. Construction of Complete 540 – Phase 1 began in late 2019 and is expected to be substantially completed by July 1, 2023.
This week, Treasurer Folwell and the SLGFD are planning to sell an additional $700 million in Build NC (BNC) bonds as part of a $3 billion transportation package approved by the North Carolina General Assembly in 2018. The SLGFD, a division of the North Carolina Department of State Treasurer (DST), issued $300 million of BNC bonds in June 2019.
"Since 2017, we’ve issued more than $1.5 billion in new money for highway construction and another $600 million in GARVEE bonds,” said Treasurer Folwell. “The hardworking men and women at NCDOT and the hundreds of contractors across the state need sustainable and consistent funding to address current and future road-building needs of North Carolinians.”
The DST and the SLGFD handle the sale and delivery of all state and local debt and monitor the repayment of state and local government debt. More information can be found at https://www.nctreasurer.com/divisions/state-and-local-government-finance-division