$200 million in bonds; fuggetaboutit

The low interest rates may be a curse to folks on a fixed income or investors who prefer stable Treasury notes to stocks, but it’s helping out municipalities who can sell bonds at the lowest rate since 2003.

That’s according to the Virginia Resources Authority, which just sold a bundle of 15 municipal loans for $200 million at 3.85 percent. An handful were for municipalities who were refinancing.

The VRA was created by Virginia’s General Assembly in 1984 and has its office in Richmond. Municipalities can choose how to sell bonds, but those that work with the VRA do so because they can get in with its AAA bond rating, said Sheryl Bailey, the executive director.

“One of the benefits is that we have state credit enhancements that make bond insurance unnecessary,” she said. “So with the commonwealth’s moral obligation backing, the AAA rating comes from the VRA directly.”

Bailey said that in this particular sale, VRA sold $40 million of the bonds to everyday Virginians. She said the agency finds radio the most effective way to advertise the sale.

The rest went to institutional investors.

The following entities raised money:

Bedford County PSA: $10.4 million for refinancing
Blue Ridge Regional Jail Authority: $59.4 million for a jail and a refinancing
Caroline County: $7.6 million for refinancing
Culpeper County: $4.1 million for an EMS building and courthouse renovation
Falls Church: $5.6 million for drinking water improvements
Faquier County: $3.9 million for refinancing
Hampton Roads Regional Jail Authority: $14 million for refinancing
John Flannagan Water Authority: $975,000 for drinking water improvements
Loudon County: $8.4 million for fire/rescue and ERP system
City of Manassas: $2 million for refinancing
Patrick County: $6.4 million for a jail and public safety building
Rapidan Service Authority: $6.5 million for sewer system improvements
Rappahannock Regional Jail Authority: $33.8 million for refinancing
Shenandoah County: $16.5 million for a courthouse and renovations
City of Winchester: $12.7 million for drinking water improvements

Aaron Kremer is the BizSense editor. Please send news tips to Editor@richmondbizsense.com.