Massachusetts will head to market in the next two weeks with $538.8 million of SIFMA-index general obligation debt that will refinance Series 2005A variable-rate bonds.

Citi provides a line of credit on the Series 2005A bonds, with the liquidity facility set to expire March 29. The state has opted for refinancing the variable-rate bonds into SIFMA-index bonds rather than replacing the liquidity facility. Selling SIFMA bonds will help diversify the state’s outstanding variable-rate bonds and broaden its investor base to attract short and intermediate bond funds, said Colin MacNaught, the state’s assistant treasurer for debt management.

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