featured graphic for California State Treasurer Fiona Ma during COVID-19

California State Treasurer Fiona Ma announces sale of $1.8 billion general obligation bonds for capital improvement costs

California State Treasurer Fiona Ma today announced the completion of the sale of $1.8 billion various purpose general obligation bonds (G.O. Bonds) to finance costs related to a variety of state programs and to refinance prior borrowings for interest cost savings.

“Investors continue to seek out California’s general obligation bonds as a secure and reliable investment option,” said Treasurer Ma. “Favorable conditions in the markets enable the State to borrow at advantageous rates for important projects across California that will improve our public infrastructure and support programs benefitting Californians.”

California’s G.O. Bonds are rated Aa2 by Moody’s Investor Service, AA-minus by S&P Global Ratings, and AA by Fitch Ratings.

Proceeds from the sale will be used to finance or refinance capital improvement costs such as K-12 public education facilities, higher education facilities, transportation improvements projects, and other voter approved purposes.

“Raising money to build and improve California’s public assets and support state programs also contributes directly to our economy by creating jobs for Californians,” said Treasurer Ma.

The G.O. bonds were sold at all-in true interest cost of 2.034%. The bonds will mature on dates ranging from 2021 to 2049 and bear interest rates ranging from 2.375% to 5%. The bonds were initially reoffered to investors at yields ranging from .09% to 2.56%.

BofA Securities and J.P. Morgan Securities acted as joint senior managers on the offering, with Ramirez & Co. serving as a co-senior manager and 24 firms serving as co-managers. The bond sale is expected to close on March 23, 2021.

The calendar of all upcoming state bond sales is available at BuyCaliforniaBonds.com

This article was released by the Office of the California Treasurer.