Gov. Nathan Deal announced today that the state of Georgia successfully sold $247 million in general obligation bonds to fund repairs and renovations to state facilities, construction for K-12 schools and improvements to water and sewer systems throughout the state.
The state was able to secure record low rates of 0.85 percent for the five-year bonds and 3.13 percent for the 20-year bonds. In addition to the bond sale, the state refinanced $153.8 million of outstanding debt at a rate of 2.34 percent, saving the state $13.3 million in debt service over the life of the bonds.
"These are historically low rates," said Deal, "and that translates into savings for Georgia. It is important for the state to continue its conservative fiscal management and that is how we have governed and how we will govern."
The Georgia State Financing and Investment Commission approved the bond sale at its meeting on Wednesday. This week's sale was sold on a competitive basis with solid demand and aggressive bids for Georgia's high-grade bonds.
Moody's, Fitch, and Standard & Poor's assigned the triple-A bond rating with a stable outlook to the State's General Obligation Bonds last week. The rating firms' individual ratings are Aaa, AAA and AAA, respectively. The triple-A ratings reflect the highest rating available to government issuers and demonstrate what a great value Georgia's bonds are to investors.
"Retention of the top bond ratings during the current economic climate illustrates the state's commitment to sound fiscal management and willingness to take action to structurally balance the budget," Deal said last week.