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COMMONWEALTH ISSUES $124 MILLION GENERAL OBLIGATION BONDS

 HARRISBURG, Pa., Nov. 17 ~PRNewswire~ -- Gov. Robert P. Casey announced today that the state's $124 million general obligation bond issue sold today at the lowest interest rate in 15 years.
 "This is good news for Pennsylvania," Casey said. "It's also another very positive expression of Wall Street's continuing confidence in the fiscal management of our state."
 The winning bidder was a syndicate led by Goldman, Sachs & Co. with a 5.77 percent average interest rate. Three bids were placed. The Commonwealth's last general obligation bond issue received an average interest rate of 5.84 percent.
 The interest rate was also the lowest since 1977.
 At the same time, state Budget Secretary Michael H. Hershock urged the General Assembly to pass the 1992-93 capital budget bill to authorize borrowing for this year.
 "This is an opportunity for the Commonwealth to take advantage of the market when the interest rates are favorable, Hershock said.
 "It is also critical to the advancement of our Jump Start Program which has a proven record for using the proceeds of these sales to create badly needed jobs for the citizens of Pennsylvania during these difficult economic times."
 Operation Jump Start is Casey's program which, now in it's second year, creates jobs and stimulates the economy by accelerating construction and improvement projects in the state.
 The Commonwealth's current credit ratings were all affirmed by the major bond rating firms:
 -- Fitch Investors Service, Inc. AA-
 -- Moody's Investors Service A1
 -- Standard and Poor's Corporation AA-
 The proceeds of the bonds will be used as follows:
 -- $68 million for the construction and improvement of state facilities;
 -- $28 million for low-interest PENNVEST loans;
 -- $17 million for the purchase of agricultural conservation easements;
 -- $6 million for redevelopment assistance capital projects;
 -- $2 million for furniture and equipment purchases; and,
 -- $1 million for land and water development projects.
 General obligation bonds are long-term borrowing used to make investments in various infrastructure facilities and equipment that are usable over many years.
 ~delval~
 -0- 11~17~92
 ~CONTACT: Sue Grimm, deputy press secretary of the Commonwealth News Bureau, 717-783-1116~


CO: ST: Pennsylvania IN: INS SU: JS -- PH029 -- 2062 11~17~92 17:06 EST
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Publication:PR Newswire
Date:Nov 17, 1992
Words:358
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Clarification.

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