Bond sale nets lowest rates in 20 years
Wednesday, February 4, 2009 |
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Late last month, Moody’s Investors Service, Standard & Poor’s Ratings Service and Fitch Ratings affirmed the state’s Aaa, AAA and AAA, respectively. The triple-A ratings reflect the highest rating available to government issuers.
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This week’s sale was completed in a single day and largely sold to retail investors, reflecting solid demand for
These rates translate into an annual debt service savings of $5.9 million compared to budgeted amounts, and are more favorable than the interest rates received in the state’s last bond sale in June.
“In these challenging economic times, this bond offering gave Georgians the opportunity to invest in the state while strengthening their own portfolio,” said Governor Perdue. “We are pleased with the swift sale of the bonds and competitive rates and will be even more pleased when we see the ground breaking on these projects, putting many Georgians back to work.”
Approximately 90 percent of the retail orders originated from
Monday’s sale of bonds is part of the $1 billion in the capital outlay program approved in the state’s 2009 budget. GSFIC plans to sell the remaining authorized, but unissued, bonds later this spring, depending on market conditions.
In his 2010 budget proposal, Governor Perdue recommended an additional $1.2 billion in bond projects, which will create approximately 20,000 additional jobs.
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