V.I. Government Sells $146 Million In Bonds

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Published on Friday, 07 September 2012 11:21

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(St Thomas Source): The V.I. Public Finance Authority sold $146 million of Matching Fund Bonds on Thursday, according to Government House. The bond issue raised $130 million to fund operating costs of the government over three fiscal years, as well as to fund tax refunds, workers compensation costs and WAPA accounts receivable.

The bonds were sold at an all-in cost of 4.45 percent for the 20-year bond issue, well below the budgeted cost for the financing and among the lowest interest costs ever achieved on a long-term financing by the V.I. government, Government House said.

Investor demand was strong, as mutual fund companies, asset managers and insurance companies put in orders for almost $600 million of bonds, allowing the interest cost to be pushed to the final low level.

“The market response was extraordinary,” according Troy Clark, a banker with the financing team in the prepared statement. “Institutional investors did a lot of work digging into this credit, and clearly they voted with their money and liked what they saw.”

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