Good timing and an embracing debt market allowed Connecticut taxpayers to issue more bonds than expected but at a low enough interest rate to save them $40 million over five years, the state treasurer says.
Treasurer Denise L. Nappier said Friday the state’s original $600 million bond issue swelled to $1.08 billion due to favorable response from the debt market. Debt the state planned to issue at a later date was accelerated to this sale to take advantage of the timing, she said.
“The stars were in alignment for us,” Nappier said in a statement. “Not only did we structure an efficient bond offering, we tapped into a favorable market climate.”
The economic recovery notes the state issued bear an interest rate of 2.34 percent, which will save the state $40 million over five years, beginning in 2012, Nappier said.
