West Virginia officials announced the interest rate for the largest transportation bond in state history.
Governor Jim Justice and Secretary of Transportation Tom Smith said in a news release that the interest rate is set at 2.145 percent for the first GARVEE bond sale of $260 million. The sale will close October 26th.
GARVEE is a type of bond issued by a state or state infrastructure bank under the guidelines of the National Highway System Designation Act of 1995. States must repay the bonds using federal funds expected to be received in the future.
“As a businessman, I know how important it is to aggressively pursue low rates for wise investments and we thought that the interest rate would be in the neighborhood of 3.5 percent," said Justice in the release.
"To get a 2.145 percent interest rate is great news. I am encouraged by the strong investor demand and these attractive borrowing rates for my Roads to Prosperity Highway Program."
This is the first of three GARVEE sales and will target 18 bridge replacement projects and 13 interstate rehabilitation projects across West Virginia.
In early October, voters approved a statewide referendum that allows the issuance of $1.6 billion in road bonds.