DALLAS - Texas earned record low interest rates when it priced $5.4 billion sale of tax and revenue anticipation notes on Aug. 26, Comptroller Susan Combs said.
The rate of 0.1326% was the lowest rate for the state's one-year notes since it began issuing TRANs in 1987, Combs said.
"The best ratings from Wall Street ratings firms and strong demand for Texas notes helped drive down the borrowing cost," Combs said. "Buyers bid about $19.6 billion -- more than triple the amount offered for sale. The competitive bids for today's sale show that investors are very confident in the Texas economy and the direction it's heading."
The previous low interest rate received for the state's one-year notes was 0.2008 percent in 2013.
Money from TRAN sales is used to help fund expenditures such as public school payments early in the fiscal year and manage cash flow between the start of the fiscal year and the arrival of tax revenues later in the year.
The $5.4 billion in notes from the Aug. 26 sale will be repaid on Aug. 31, 2015.
With ratings of triple-A from the three largest ratings agencies, Texas earned top short-term ratings on the notes, as well.
