(The Center Square) – Maryland successfully sold $400 million worth of General Obligation Bonds this week, the funds from which will be used for capital projects, Treasurer Dereck Davis announced.
The state sold Series A tax-exempt bonds in two different bidding groups and had one bidding group for Series B taxable bonds, according to the treasurer’s office. The bonds had an all-in true interest cost of 2.97%.
“Today’s strong reception in the market underscores Maryland’s solid reputation for responsible fiscal management,” Davis said in a statement. “The bond proceeds from today’s sale will be used to support important capital projects that will benefit our state and its citizens. As we continue to navigate an uncertain economy, this sale demonstrates the market’s continued confidence in the [sic] Maryland’s ability to prudently manage its long-term financial responsibilities.”
According to Davis’ office, decisions on how proceeds from the sale will be spent are determined by the legislature through the budget process.
Under Maryland’s constitution, the General Assembly is required to enact a balanced budget by the 83rd day of the legislative session, or one week before the session ends. The legislature convened Jan. 11 and is expected to adjourn April 10.
The sale follows analysis from three major rating agencies – S&P Global, Moody’s Investors Service and Fitch Ratings – that showed Maryland has maintained its AAA bond rating. As previously reported by The Center Square, Maryland is among just 13 states who hold a AAA rating from all three major rating agencies.