State’s $500M Bond Sale Finds Low, Competitive Rates

The State of Maryland’s recent sale of $500 million in top-rated general obligation bonds yielded low interest rates – a function of the state’s highly respected fiscal reputation, and the generally low-yield marketplace for high quality investments.

The main sale of $450 million in tax-exempt municipal bonds was awarded at 2.825% interest (true interest cost) with an immediate bond premium of over $44 million, and an additional $50 million in taxable bonds were let at 1.345% interest.

From Treasurer Nancy Kopp’s press release:

Treasurer Kopp commented “This was a great bond sale with high participation by outstanding investors. This is truly a win-win situation. Maryland’s taxpayers benefit from the low interest rates associated with a very competitive sale of a triple AAA-rated instrument while investors take advantage of a safe place to invest their money.”

Read the Treasurer’s press release online.

Michael Sanderson

Executive Director Maryland Association of Counties