The Department of State Treasurer sold $442 million of bonds today to pay for transportation projects in Wake and Johnston counties and to refund certain previous bonds.
The GARVEE Bond Package was approved by the Council of State in March for the completion of Interstate 540 Phase II and to generate interest rate savings. Grant Anticipation Revenue Vehicles (GARVEE) bonds were made possible by the General Assembly in 2005, allowing the state to borrow against future receipts of federal transportation fund revenues for highway projects. As of the end of the last fiscal year, North Carolina had issued $2 billion in GARVEE bonds.
The bonds were sold to the public with an underwriting team of J.P. Morgan, BofA Securities, Truist Securities and Wells Fargo Securities. The bonds also refunded previous GARVEE bonds generating net present savings in excess of $6.7 million. The true interest cost of the bonds is 3.88%. The bonds will be paid off by 2040.
Approximately $300 million from the bond issue will be used for the following projects.
