Gov. Perdue Notes Bond Sale for State

Gov. Sonny Perdue announced the sale of up to $314,530,000 in tax-exempt bonds, currently scheduled for May 4 and 5, through negotiated sale.

This method of sale gives retail investors the ability to buy Georgia bonds directly by placing orders with their brokerage firm on the day of the sale. By expanding the investor base and increasing demand, the state expects the transaction to result in a favorable outcome for both the buyers and the state.

The Georgia State Financing and Investment Commission (GSFIC) approved the sale of the bonds at its Feb. 4 meeting following the successful sale of just over $613 million in bonds at historically low interest rates.

Moody's, Fitch and Standard & Poor's have assigned their triple-A bond rating with a stable outlook to the State's General Obligation Bonds. The rating firms' individual ratings are Aaa, AAA and AAA, respectively. The triple-A ratings reflect the highest rating available to government issuers and demonstrate what a great value Georgia municipal bonds are to investors. The bonds are backed by the full faith and credit of the state of Georgia and, subject to the limitations and conditions described in the Official Statement relating to the Bonds, interest on the bonds is, in the opinion of bond counsel, excludable from gross income for federal and Georgia state income tax purposes.

Individuals can learn more about the Series 2009C and Series 2009D General Obligation Bonds at www.buygeorgiabonds.com.

The bond sale is a part of the capital outlay program approved in the state’s 2009 budget. The FY 2010 appropriations bill authorizes an additional $1.2 billion in general obligation bonds for K-12 school construction, improvements and expansions at university campuses, and a variety of other projects. In addition to low interest rates, the state is also benefitting from low construction costs and putting Georgians to work building these needed projects.