New York: State and local government bond sales climbed by almost 30 per cent to about $6.1 billion (Dh22.39 billion) last week, led by an expanded Hawaii offering that matched a record low for ten-year Build America borrowing costs.
Hawaii boosted its offering of taxable, federally subsidised Build America Bonds by 60 per cent to $500 million to fund capital projects. The state sold $211.6 million of tax-exempts to refinance debt.
"Very favourable market conditions and strong demand for the bonds" prompted the increase, Governor Linda Lingle said in a news release last week.
The Build America Bond market, which afforded local government an alternative for financing public works almost a year ago, is approaching $75 billion.
The county-owned airport serving Las Vegas and an Oakland, California-based water agency joined Hawaii in borrowing under the programme last week.
Hawaii's taxable debt due 2020 was priced at 4.347 per cent for a spread to benchmark Treasuries of 70 basis points .
