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PENNSYLVANIA SELLS $242 MILLION IN GENERAL OBLIGATION BONDS

 HARRISBURG, Pa., Aug. 18 /PRNewswire/ -- Budget Secretary Michael H. Hershock said a $242 million Pennsylvania general obligation bond issue sold today at the lowest interest rate in 21 years.
 The winning bid was submitted by the First Boston Corp. at an average interest rate of 5.0386 percent, the lowest since 1972. A total of three bids was received.
 The state's last general obligation bond issue in June drew an interest rate of 5.3256 percent.
 "Last week, Wall Street told us that Pennsylvania is showing positive economic signs, including our fiscal 1992-93 state budget surplus of $239 million," Hershock said. "Today's bond sale is further proof of our solid credit rating."
 Prior to the issue, Pennsylvania's investment grade bond ratings were maintained at their current levels by the major rating firms:
 -- Fitch Investors Service Inc. AA-
 -- Moody's Investors Service A1
 -- Standard and Poor's Corp. AA-
 General obligation bonds are long-term borrowing used to make investments in various infrastructure facilities and equipment that are usable over many years.
 The proceeds of the bonds sold today will be used as follows:
 -- $98 million for the construction and improvement of state facilities;
 -- $84 million for PENNVEST water and sewer loans;
 -- $2 million for land and water development projects;
 -- $25 million for local correctional facilities;
 -- $3 million for volunteer fire and ambulance company loans;
 -- $25 million for agricultural conservation easement purchases;
 -- $5 million for economic revitalization projects
 /delval/
 -0- 8/18/93
 /CONTACT: John Taylor of the Commonwealth News Bureau, 717-783-1116/


CO: Pennsylvania Office of the Governor ST: Pennsylvania IN: SU:

MJ-CC -- PH030 -- 4111 08/18/93 18:02 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
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