LARGEST PUBLIC WORKS BOARD BOND ISSUE SOLD, BENEFITTING COLLEGE SAVERS
LARGEST PUBLIC WORKS BOARD BOND ISSUE SOLD,
BENEFITTING COLLEGE SAVERS
SACRAMENTO, Calif., Nov. 14 /PRNewswire/ -- State Treasurer Kathleen Brown today announced the successful sale of $505 million in Public Works Board bonds, the largest sale of its kind in state history.
"Despite shaky market conditions, there was a healthy appetite for the bonds," said Brown. "California continues to rank as a leading credit in the market."
Of the total sale amount, more than $15 million were sold as College Savings Bonds. Unlike traditional bonds which are sold in $5,000 denominations, College Savings Bonds are sold in $1,000 so that someone with as little as $321 to invest can buy one. The yields on these bonds ranged from 5.45 percent on a five-year bond to 6.5 percent on an 18-year bond.
"Every order placed for College Savings Bonds has been filled," said Brown. "I am pleased that we have been able to meet the demand."
The entire bond sale will be used to finance the construction of two prisons in Imperial County. The bonds were rated AA and sold at a true interest cost of 6.6 percent.
/CONTACT: Jennifer Openshaw of the California State Treasurer's Office, 916-653-2995/ CO: California State Treasurer's Office ST: California IN: FIN SU: JL -- SF014 -- 4545 11/14/91 16:01 EST