- $65 million of new money bonds sold to Citigroup in competitive sale
- Financing secured for Schools, Metro, Maintenance Capital & more
- $41 million refunding of prior debt saves approximately $2 million
ARLINGTON, Va. — Arlington County today issued $65 million of General Obligation Public Improvement Bonds, and $41 million of General Obligation Refunding Bonds.
Seven bids were received on the Series 2014 bonds issued for new projects, with Citigroup Global Markets Inc. winning with an average interest rate of 2.8 percent. Proceeds of the sale will finance projects approved by the County Board, including the County's capital contributions for Metro; Neighborhood Conservation; WalkArlington; BikeArlington; ConnectArlington; Paving; Arlington Public Schools projects and Utilities projects.
“Once again, Arlington has benefitted from extremely low interest rates,” said County Manager Barbara Donnellan. “This means that vital County projects will be funded at the lowest cost to taxpayers. We also continue to refund older debt at lower rates, saving more money and reducing the County's annual debt service costs.”
$2 million saved by refunding prior debt at lower rates
The remaining $41 million of bonds was issued to refund older, high interest rate County bonds. Out of eight bidders, PNC Capital Markets submitted the winning bid of 2.27 percent. Total savings from the refunding is approximately $2 million on a present value basis. These savings will be allocated among the County, Schools and Utilities funds.
The extremely low interest rates received on both series of bonds is a result of the County's Triple-AAA rating for its bonds, a reflection of the County's conservative budget management and strong fiscal operations. More information is available on the County's Web site.