City Sells $77M in General Obligation Bonds

The City of Alexandria last week announced it bid and sold $76.82 million in AAA/Aaa-rated general obligation bonds at a 2.55 percent true interest cost over their 20-year life. This beat the 2010 rate of 2.93 percent. Out of the eight underwriters who placed bids, Citigroup Global Markets submitted the lowest interest rate bid.
 
The bonds will be used to finance certain capital improvement projects, including transportation improvements, sanitary sewers, public school facilities and other infrastructure costs, according to the city.

The city also refinanced $17.25 million in previously issued city general obligation bonds to lower interest rates. The bonds were refinanced to a true interest cost of 1.96 percent by the winning bidder, Bank of America Merrill Lynch. This is one of the lowest interest rates ever achieved by the city, besting this March’s historically low rate of 1.98 percent.