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Investors Turn Out for Washington State Competitive Bond Sales
Contact: Chris McGann 360-902-9033
Wednesday, July 20, 2011 - Investors turned out in force Wednesday morning for Washington’s three competitive bond sales totaling $648.45 million.
The state received eight bids on $388 million tax-exempt Various Purpose General Obligation Bonds. Nine bidders competed for the $233 million Motor Vehicle Fuel Tax General Obligation Bonds. The $27.9 million taxable General Obligation Bonds received 15 bids.
“Investors are clearly attracted to Washington State bonds,” State Treasurer James McIntire said. “The high demand we’re seeing for our bonds this week ensures competitive rates that give the public maximum value for every tax dollar.”
Series A bonds provide funds to pay for various capital projects such as state buildings, public school skill centers facilities, state programs for Columbia River Basin water supply development, and farmland preservation. Series B fuel tax-backed bonds fund state highway improvements such as:
- Lane and bridge construction in Snohomish County
- Lane construction on SR 9
- Construction of a new I-5 interchange in King County
- Lane construction on I-405
- Construction of a new interchange on US 12 at SR 124 near Pasco
- US 395 realignment and US 2 lowering in Spokane
- Improvements to the southern mile of the Alaskan Way Viaduct
- Construction of HOV lanes on I-5 in Tacoma
- Improvements to a section of I 90 near Snoqualmie Pass
- Other lane expansion and replacement of existing and new ramps for I-5
Citigroup Global Markets Inc. was the successful bidder for the Series 2012A tax-exempt bonds at a true interest cost (TIC) of 4.052596 percent. Banc of America Merrill Lynch won the Series 2012B-1 Motor Vehicle Fuel Tax General Obligation Bonds at a TIC of 4.261237 percent.
J.P. Morgan Securities purchased the taxable series at a TIC of 0.68175 percent.
“I am very pleased with investors’ continued confidence in Washington State,” McIntire said. This week’s competitive sale came on the heels of the state’s first retail offering in more than 14 years. Individual investors purchased almost $90 million of the Series 2012B-2 Motor Vehicle Fuel Tax General Obligation Bonds.
For more information visit the Office of the State Treasurer’s website at www.tre.wa.gov