The state sold $175 million of special tax obligation refunding bonds last week with a true interest cost of 4.8815% the lowest interest cost for a 20-year bond in the nine-year history of the state's special tax obligation program.
"In these tough economic times, we are aggressively looking for ways to save money," state Treasurer Joseph M. Suggs Jr. said Friday. "Once again we have been able to take advantage of the low interest rate environment and provide historically low debt service cost for Connecticut taxpayers;"
This month, Suggs' office sold $217 million of special tax obligation refunding bonds and achieved $13 million cumulative debt service savings.
A spokeswomen for the treasure said it was still unclear what the savings will be from last week's sale.
The competitively sold issue included serial bonds priced to yield from 3.20% in 1995 to 5.15% in 2011. There was also a term bond priced as 5s to yield 5.18%.
The issue was won by a group led by Bear, Stearns & Co. Goldman, Sachs & Co. submitted the cover bid at 4.8841%.
Proceeds from the sale will help fund the state's Transportation Infrastructure Program.