Treasurer Kennedy Says Competition Was Fierce Among Institutional Investors

BATON ROUGE, LA – An online auction was held Thursday at a meeting of the State Bond Commission to sell $200 million in general obligation (GO) bonds that will finance construction projects across Louisiana, State Treasurer John Kennedy announced.
“The auction was very successful. Competition was fierce, and we achieved a great interest rate,” said Treasurer Kennedy.
Investors from across the globe competed for the bonds. The winning bid was awarded to Citigroup Global Markets Inc. at an interest rate of 3.031738%.
By using an online bidding system, more investors can participate. Investors can change their bids until seconds before the bid deadline, allowing the state to benefit from the most cost-effective interest rate.
“The top bids were very close. I am very pleased that the market showed such a positive reception to these bonds,” Treasurer Kennedy said.
The $200 million in General Obligation Bonds will fund 135 projects. View the project list at http://www.treasury.state.la.us/Lists/Calendar/Attachments/181/10-16-14%20Agenda%20Final.pdf. The list is broken down by parish.

Contact:
Michelle Millhollon
(225) 342-0012
mmillhollon@treasury.state.la.us