“The market’s clamor for California bonds provides solid evidence that the market is eager to invest in our state,” Treasurer John Chiang.

LOS ANGELES — California reported that it achieved $195 million in net present value savings on $1.5 billion in tax-exempt and taxable general obligation bonds it priced Tuesday in three separate competitive offerings.

State officials said it was the largest competitive sale of long-term municipal bonds issued in the United States in a single day in more than 25 years.

The sale was comprised of $1.23 billion of tax-exempt bonds and $237 million of taxable bonds that were bid out competitively in three separate groups – California officials view it as one sale.

Pennsylvania sold $1 billion in a single-tranche competitive sale in February 2015.

"The market's clamor for California bonds provides solid evidence that the market is eager to invest in our state," Treasurer John Chiang said in a prepared statement. "Our government is on sound footing after weathering the worst recession in more than half a century."

A large portion of the sale, $998.5 million refunded existing, higher-interest debt.

The refunding will save taxpayers approximately $250 million in interest costs over the remaining life of the bonds. The savings, when calculated on a net present value basis, is approximately $195 million.

The new money raised by the bond sale will pay for highway safety projects, safe drinking water supplies and housing and emergency shelter programs.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.