MONTPELIER — Vermont State Treasurer Beth Pearce announced that $153.3 million in State General Obligation bonds were successfully sold in three separate series, generating proceeds of $183.1 million, including a premium of $29.8 million. The bonds were issued to fund new capital projects and to refinance existing debt with lower interest rates.
The refinancing portion of the transaction saved the taxpayer over $7.6 million in borrowing costs on a net present value basis. Additionally, the Series A new capital projects portion of the bonds raised $98.8 million in proceeds and was issued at a true interest cost of 1.43%, while the true interest costs for the shorter Series B and C refinancing bonds were 0.63% and 0.66%, respectively.
Funds raised by the bond sale will finance capital projects authorized by the General Assembly, including clean water initiatives, improvements to state buildings, public safety, housing, conservation and recreation projects, and other capital projects.