The Commonwealth Transportation Board has closed the sale of the $600 million of Commonwealth of Virginia Transportation Capital Projects Revenue Bonds sold May 11 to advance transportation projects managed by the Virginia Department of Transportation and the Virginia Department of Rail and Public Transportation.
The Commonwealth received seven highly competitive bids from underwriters. The winning bid was from Wells Fargo Bank with a true interest cost of 4.025 percent. The $600 million issue of bonds sold at a premium, netting the Commonwealth $647.7 million.
“The outcome of this sale highlights the benefits of the accelerated use of bond authority sought and obtained by my transportation plan provided by House Bill 2527 and Senate Bill 1446 of the 2011 General Assembly,” says Gov. Bob McDonnell. “The interest rate and premium received on this sale illustrates the great market conditions and value of Virginia’s credit.”
This bond sale was the first of three planned $600 million issuances of Transportation Capital Projects Revenue Bonds over three years. The bonds were rated AA+ by Fitch and Standard and Poor's, and Aa1 by Moody's. It was the second issuance of the Capital Projects Revenue Bonds that were authorized by the General Assembly in 2007.
As a component of the transportation funding package, the bond sale will provide funding for transportation projects across the Commonwealth as reflected in the update to the CTB's Fiscal Years 2012-2017 Six-Year Improvement Program this spring.
The 17-member CTB, appointed by the governor, establishes the administrative policies for Virginia's transportation system. The CTB allocates highway funding to specific projects, locates routes and provides funding for airports, seaports and public transportation.