New Jersey’s General Obligation Bonds Receive Significant Interest, Produce Favorable Interest Rate

Eagerly Awaited Transaction was Authorized Under the “COVID-19 Emergency Borrowing Act”

(TRENTON) – The New Jersey Department of the Treasury today priced the General Obligation bonds authorized under the COVID-19 Emergency Borrowing Act one day earlier than anticipated due to the amount of interest the State had received.

Treasury confirmed that the bonds were all sold tax-exempt in the capital market and the transaction was significantly oversubscribed. The True Interest Cost (TIC), which is the total cost of the borrowing, is expected to be below 1.95 percent.

However, approval of the transaction and authorization of the pricing will not be official until the issuing officials meet tomorrow afternoon.

“We are extremely pleased with today’s outcome,” said State Treasurer Elizabeth Maher Muoio. “We believe the significant oversubscription we witnessed and the favorable interest rate we received is a sign that investors have faith in New Jersey’s fiscal outlook.”

The state anticipates receiving $4.288 billion in total proceeds from both principal and interest with a twelve year maturity.

The transaction was overseen by Treasury’s Office of Public Finance with Bank of America serving as the Senior Managing Underwriter and Acacia Financial Group serving as financial advisor.