"This is a great deal for our state," said California State Treasurer John Chiang.

LOS ANGELES — California achieved $494.5 million in present value savings on the refunding portion of $2.65 billion in general obligation bonds it priced this week, according to State Treasurer John Chiang.

JPMorgan Securities priced and repriced the new money and refunding bonds for institutions Tuesday after a one-day retail order period.

"This is a great deal for our state," Chiang said in a statement. "Every dollar we save in interest charges is available for education, health services, environmental protection and other programs that Californians value."

The savings come from the $2.04 billion segment of the deal that refunded outstanding debt for interest rates savings.

The issue was rated at the AA-minus level across the board by the three major rating agencies after Fitch bumped the rating up a notch ahead of the sale.

"Both the ratings upgrade and the successful bond sale underscore that investors are bullish on California," said Chiang. "Our economy is stable, strong and growing."

The deal marks the second time this year that the Golden State has issued a multi-billion dollar bond deal. In March, the state sold $2.95 billion of GOs, in the largest bond deal of 2016.

California has saved a total of $2.1 billion in reduced borrowing costs for general obligation bonds since Chiang became treasurer in January of 2015, according to the treasurer's office.

When factoring in other state agency bond sales, including the University of California and the Department of Water Resources, the savings top $4.2 billion, he said.

The new money GOs priced to yield between 0.50% with a 5% coupon in 2017 to 2.48% for the 4% coupons in a 2046 term bond.

The refunding bonds were priced to yield between 0.45% with on the 5% coupon side of a split 2017 maturity to 2.55% in a split 2037 maturity.

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