First Connect NC bond sale takes advantage of historically low interest rate

RALEIGH — Yesterday marked the inaugural sale of the first $200 million of the $2 billion Connect NC bond to support investments in our state’s education, parks, National Guard and water and sewer infrastructure introduced by Governor Pat McCrory and overwhelmingly passed by voters in March.

“This is a great day for North Carolina as we are one step closer to breaking ground on long-term infrastructure projects across the state to support our growth and quality of life for generations to come,” said Governor McCrory. “As one of only ten states in the nation with an AAA credit rating, we are proud to report that North Carolina has experienced a strong demand for our bonds.”

Citigroup Global Markets Inc. submitted the lowest of six bids offering a historically low interest cost of 2.08 percent. Projects will begin receiving funds in mid-August.

Earlier this month, all three major bond rating agencies—Moody’s Investor Services, Standard and Poor’s and Fitch Ratings—assigned an AAA bond rating, the highest possible, to North Carolina’s first issuance of the Connect NC bond. Rating agencies attribute the strong bond rating to North Carolina’s continued and diverse economic expansion, ample reserves and long history of conservative financial management.