The Washington Metropolitan Area Transit Authority’s finance committee voted to approve the issuance of $340 million of Metro Matters bonds.

The bonds will be used to retire commercial paper that will expire in September 2010 and to provide funds for capital projects. The vote stipulates that the average interest rate not exceed 5.50% and that maturities do not exceed 25 years.

The bonds are expected to be issued in early June. The full board still needs to approve the bonds.

WMATA’s 2003 bonds were upgraded to A from A-minus by Standard & Poor’s in April. The authority plans to issue up to $468 million of debt this year.

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