JEFFERSON CITY, Mo. – Gov. Jay Nixon today voted as Chairman of the Board of Public Buildings to approve the public sale to Bank of America Merrill Lynch of $100 million in Series A 2016 Special Obligation Bonds to provide continued support to Build Missouri, the statewide capital improvements initiative which funds repairs and renovations at state facilities, veterans homes, state parks and higher education campuses. The recent reaffirmation of Missouri’s AAA credit ratings by national credit rating agencies helped ensure an interest rate of 2.28 percent over the life of the bonds.
“Today’s bond sale is another example of how our continued efforts to maintain our AAA credit rating are paying off through lower interest rates, which will save millions for Missouri taxpayers,” Gov. Nixon said. “When complete, these capital improvement projects will improve the learning environment for students at our colleges and universities, the living environment for our veterans, and the working environment for our state employees.”
Today’s issuance is the second of three expected bond sales related to the Build Missouri initiative, which supports nearly 500 projects in every corner of the state through bond proceeds and other sources. The projects were approved by the General Assembly with bi-partisan support during the 2015 Legislative Session as part of a bonding package.
Over the past seven years, the Governor’s administration has paid down hundreds of millions of dollars in state debt. Based on current projections, after the implementation of Build Missouri, state government will still have lower levels of state-issued bonding debt than when the Governor first took office.
Last week, as a result of a strong record of fiscally responsible budget management, Missouri’s AAA credit rating was reaffirmed by the rating agencies. This allows the state to benefit from low interest rates, and makes long-term capital investments more affordable.
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