Maryland Treasurer Dereck Davis announced that the state has successfully sold $400 million worth of General Obligation Bonds this week. The funds raised from the sale will be used to support capital projects across the state. The bonds were sold in two bidding groups for Series A tax-exempt bonds and one bidding group for Series B taxable bonds, with an all-in true interest cost of 2.97%.
In a statement, Davis said, “Today’s strong reception in the market underscores Maryland’s solid reputation for responsible fiscal management. The bond proceeds from today’s sale will be used to support important capital projects that will benefit our state and its citizens. As we continue to navigate an uncertain economy, this sale demonstrates the market’s continued confidence in Maryland’s ability to prudently manage its long-term financial responsibilities.”
According to Davis’ office, the state’s legislature will determine how the proceeds from the bond sale will be spent through the budget process. Under Maryland’s constitution, the General Assembly is required to enact a balanced budget by the 83rd day of the legislative session, or one week before the session ends. The legislature convened on January 11 and is expected to adjourn on April 10.
The bond sale comes after three major rating agencies – S&P Global, Moody’s Investors Service, and Fitch Ratings – affirmed Maryland’s AAA bond rating. Maryland is among just 13 states that hold a AAA rating from all three major rating agencies.
Maryland’s successful bond sale is a testament to the state’s responsible fiscal management and will provide much-needed funds for capital projects.