Minnesota Saves Millions in Bond Refi
St Paul (KROC AM News) - Like many Minnesotans, state government budget officials are taking advantage of record low interest rates.
The state says it finalized a $1.2 billion general obligation bond sale Tuesday at “historically low interest rates.” The money will be used to pay for capital construction projects such as asset preservation, higher education facilities, highway projects, and economic and redevelopment projects previously authorized.
As part of the sale, the state refinanced $704 million in existing bonds saving the state approximately $105 million.
“The timing couldn’t be more perfect to conduct our biggest bond sale ever and earn the best interest rates in our state’s bond sale history,” said Minnesota Management and Budget Commissioner Myron Frans. “Today’s successful sale allows us to continue to make investments in vital public works projects and save taxpayers more than $100 million.”
Ahead of the sale, Minnesota’s credit ratings were reaffirmed by Fitch (AAA, stable outlook), Standard & Poor’s (AAA, negative outlook), and Moody’s (Aa1, stable outlook). A state’s credit ratings play an important role in obtaining low interest rates for a bond sale. AAA is the highest credit rating awarded by the agencies.