An online auction was held Wednesday at a meeting of the State Bond Commission to sell $334 million in general obligation (G.O.) bonds that will finance construction projects across Louisiana, announced State Treasurer John Kennedy.
Among the projects are $1,505,000 for the Jimmie Davis Bridge Rehabilitation and Lighting for Bossier, Caddo; $5,365,000 for Sewerage District No. 1 of the Parish of Bossier, Bossier Planning and Construction ($28,OOO,OOO Local Match); $5,000 for the Extension of Crouch Road to Swan Lake Road/Reconstruction of Swan Lake Road To 1-220, Planning and Construction (Local Match Required); $35,000 for Hwy. 71 Street Lighting Project from LA 3032 (Westgate Drive) to LA 5111 (Jimmie Davis Hwy), Planning and Construction; $5,000 for Plain Dealing Wastewater Treatment Plant Improvement, Planning and Construction.
More than a handful of investors competed for the bonds. The winning bid was awarded to Wells Fargo Bank, National Association, at an interest rate of 3.295654 percent.
“Overall, I’m pleased. It could have been a lot worse, given our financial difficulties,” said Treasurer Kennedy. “It looks like we will be paying around 26 basis points – or about $5 million – more in interest than our last G.O. bond issue. I’m not happy with that but, like I said, it could have been a lot worse.”
The state uses an online bidding system, allowing investors to change their bids until seconds before the deadline. The online bidding system allows the state to benefit from the most cost-effective interest rate.
The $334 million in General Obligation Bonds will fund more than 200 projects. View the project list at http://www.treasury.state.la.