The District of Columbia on Tuesday issued $810 million of income tax-secured bonds - nearly double the $445 million previously planned - at an average interest rate of 4.84% after finding strong demand from retail and pricing the bonds a day early for institutional investors, said chief financial officer Natwar Gandhi.

The district increased the negotiated deal to $500 million of Series 2009A income tax-secured new-money bonds from $310 million, and $300 million of Series 2009B income tax-secured refunding bonds from $135 million. It sold the bonds to retail investors on Tuesday and had planned to market them to institutional investors yesterday. But "as the sale progressed, the response was so positive that our underwriters recommended increasing the size and making it available to all investors at one time," Gandhi said.

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