Massachusetts issued $1.2 billion in cash-flow notes at what Treasurer Steven Grossman called record-low interest rates.
The state sold revenue anticipation notes to ensure it has enough liquidity over the fiscal year.
The average borrowing cost of 0.1% on the notes is the lowest cost of borrowing that the commonwealth has ever recorded, according to Grossman, and may represent one of the lowest borrowing costs for notes in the municipal market.
The Series A Rans will be repaid in April, and the Series B ones in May.
Seventeen bidders placed more than 40 different bids for both Series A and Series B. The bid-to-cover ratio, which is a gauge of the demand for the notes, was more than 9.1 times for both series.
Grossman said the borrowing costs for the $1.2 billion is about $600,000.
The notes received the highest possible ratings — MIG-1 from Moody’s Investors Service, SP-1-plus from Standard & Poor’s, and F1-plus from Fitch Ratings.