Sale of state bonds OK'd


ANNAPOLIS -- The state Board of Public Works approved yesterday the sale of $95 million in general obligation bonds at the lowest interest rate for a state bond sale in 11 years.

The winning bid came from a syndicate of financial institutions led by Bankers Trust of New York. The interest rate was 6.310138 percent.

The Bankers Trust bid was among six sealed bids received by the state, the highest number in recent memory.

The last time the state earned such a low interest rate was in May 1980, when investors offered a winning bid of 6.09956 percent, officials said.

Board members said the favorable interest rate was a result of goodtiming in the bond market and the fact that the state maintained its Triple A rating, the highest possible, despite the ongoing recession.

Proceeds from the bond sale will help finance a variety of state and local capital projects, including the construction and renovation of public schools and community colleges, health facilities and county jails.

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