Treasurer Kennedy says market looked favorably on Louisiana despite budget challenges

BATON ROUGE, LA – An online auction was held Wednesday at a meeting of the State Bond Commission to sell $334 million in general obligation (G.O.) bonds that will finance construction projects across Louisiana, announced State Treasurer John Kennedy. “Overall, I’m pleased. It could have been a lot worse, given our financial difficulties,” said Treasurer Kennedy. “It looks like we will be paying around 26 basis points – or about $5 million – more in interest than our last G.O. bond issue. I’m not happy with that but, like I said, it could have been a lot worse.” More than a handful of investors competed for the bonds. The winning bid was awarded to Wells Fargo Bank, National Association, at an interest rate of 3.295654 percent. The state uses an online bidding system, allowing investors to change their bids until seconds before the deadline. The online bidding system allows the state to benefit from the most cost-effective interest rate. The $334 million in General Obligation Bonds will fund more than 200 projects. View the project list at http://www.treasury.state.la.us/Lists/Calendar/Attachments/199/04-02-15%20Agenda%20Posted.pdf

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