A bond refinancing Massachusetts closed Tuesday will save the commonwealth nearly $4 million in fiscal 2014 alone, Treasurer Steven Grossman announced.
Grossman said the $471 million refunding will bring present-value savings of $33.6 million, or savings of $41.6 million on total finance costs through fiscal 2024.
The deal was part of a $671 million transaction -- downsized from $1.1 billion -- that included $100 million in general obligation new money “green bonds.”
“These savings not only result from low interest rates, but also from strategic and transparent communications with the investor community and the strong fiscal management that has earned Massachusetts its highest bond rating in history,” Grossman said in a statement.
Fitch Ratings and Standard & Poor’s assign AA-plus ratings to Massachusetts GO bonds, while Moody’s Investors Service assigns an Aa1 rating.
The green bonds, which fund environmentally oriented capital projects, accounted for half of $200 million new money GO component.
Massachusetts was the first state in the nation to offer such bonds, according to Grossman.
Grossman said Massachusetts received 154 orders from retail investors and 29 orders from institutional investors for the green bond transaction. They mature in 2033, while the remaining GO bonds mature in 2043.
