State sells $108M in bonds
The state sold more than $108 million in general obligation bonds last week, marking the first time since 1990 a bond sale was conducted on a competitive basis.
According to Maine State Treasurer Bruce Poliquin, 11 national and regional investment companies on June 2 competed to buy the $39.6 million, Series A federally taxable securities, with BMO Capital Markets Corp. being the successful bidder at a total interest cost of 0.92%. In addition, 12 firms competed to buy $68.5 million in Series B tax-exempt securities, with J.P. Morgan Securities casting the winning bid at a total interest cost of 2.1%.
The $108 million of bond proceeds will be used to fund highway and railway construction, research and development, and other capital projects, all approved by Maine voters over the past few years. The competitive sale allows Maine to sell the bonds at the lowest cost possible, Poliquin said in a release.
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