Governor Perdue Announces Bond Sale, Confirms AAA Ratings

Governor Sonny Perdue today announced the upcoming sale of up to $613,850,000 tax-exempt bonds, currently scheduled for Feb. 2 and 3, through negotiated sale. This method of sale gives retail investors the ability to buy Georgia bonds directly by placing orders on the day of the sale with their brokerage firm. By expanding the investor base and increasing demand, the state expects the transaction to result in a favorable outcome for both the buyers and the state.

“In these challenging economic times, this bond offering gives Georgians the opportunity to invest in their own state while strengthening their portfolio,” said Governor Perdue. “At the same time Georgia investors add a stable investment and tax-free interest to their collection of investments, they will also help to build schools, roads and other projects that put their neighbors to work.”

The Georgia State Financing and Investment Commission (GSFIC) approved the sale of the bonds at its Dec. 3 meeting.

Moody's, Fitch, and Standard & Poor's have assigned their triple-A bond rating with a stable outlook to the State's General Obligation Bonds. The rating firms' individual ratings are Aaa, AAA and AAA, respectively. The triple-A ratings reflect the highest rating available to government issuers and demonstrate what a great value Georgia municipal bonds are to investors. The bonds are backed by the full faith and credit of the state of Georgia and, subject to the limitations and conditions described in the Official Statement relating to the Bonds, interest on the bonds is, in the opinion of bond counsel, excludable from gross income for federal and Georgia state income tax purposes.

Individuals can learn more about the Series 2009A and Series 2009B General Obligation Bonds at www.buygeorgiabonds.com.

The bond sale is a part of the capital outlay program approved in the state’s 2009 budget. In his 2010 budget proposal, Governor Perdue recommended an additional $1.2 billion in bond projects, which will create approximately 20,000 jobs. While that amount is higher than previous years, it also keeps the state in line with its debt management plan and well below the state’s bond capacity and debt ceiling.

“These top bond ratings affirm that our proactive, conservative fiscal practices and our good management of the state’s debt structure put Georgia in better shape than most states,” Governor Perdue added. “These ratings will save the state in the form of lower interest rates, and will generate attention from potential buyers looking for a stable, low-risk investment option.”
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