The state of Connecticut rode the wave of investor flight to safety in municipal bonds, selling $500 million of debt to a record number of buyers.
State Treasurer Denise Nappier said today the debt issued during the three-day sale that began Monday was double what originally was to be offered.
She said spirited demand from individual and institutional investors for the highly-rated bonds also drove the average cost of the borrowing down to 4.9 percent, saving taxpayers nearly $20 million in borrowing costs.
“It would not be a stretch to say that this transaction has led the way to an overall decline in municipal yields marketwide, and heralded the return of investors to the municipal marketplace,” Nappier said in a statement.
Sale proceeds, she said, will fund projects that will contribute to the state’s overall economy, such as grants to local municipalities to build schools and for clean water projects, improvements to Connecticut colleges and universities, and other state building projects.
