State sells $131 million in bonds
November 20, 2009
Nevada Treasurer Kate Marshall has announced the sale of $130.9 million in general obligation bonds at one of the lowest interest rates ever.
The rate of 3.69 percent was well below the 4.3 percent rate for a similar bond sale a year ago and far below rates a decade or more back.
She said the benefit to Nevada taxpayers is that lowers the amount of public money the state must pay to redeem the bonds. She said the state will save an estimated $4 million in bond payments over the next 20 years.
The bonds, sold under the Build America federal bond program, will finance $75 million in state and local government construction projects. About $3 million will finance historic renovation projects, $13 million for Lake Tahoe restoration work and $13 million for other public restoration projects. Finally, $26 million will refinance bonds sold earlier but at a higher interest rate.
She credited Nevada’s solid AA credit rating for the low interest rate. Nevada maintained that rating this year because of its balanced budget, spending reductions and tax increases to maintain the state’s financial solvency, Marshall said.