Treasurer Loftis Announces $67 Million Bond Refinance Savings
October 11, 2012
(Columbia, SC) - State Treasurer Curtis Loftis announces the state has reached agreement to refinance $425 million of State Infrastructure Bank revenue bonds. Refinancing will save taxpayers approximately $67 million. The interest rate was lowered while not changing the final repayment date.
“For the second time this year, our office was able to take advantage of historically low market rates for the benefit of the entire state,” Treasurer Loftis said. “These refinances can be long and complex and I applaud my staff for continuing the office mission of streamlining state government and finding savings anywhere possible. Maintaining and expanding our road system is a key factor in South Carolina’s economic development and I thank the State Infrastructure Bank for partnering with us to achieve these savings. Instead of sending $67 million dollars out of state in interest, that money can be used for future road projects.”
“I would like to thank the staff of the State Infrastructure Bank and the Treasurer’s Office for achieving another substantial savings which now totals $177 million in the 10 years I’ve served,” said State Infrastructure Bank Chairman Don Leonard. “These savings have helped us provide financial assistance to 19 cities and counties for major transportation projects across our state and other states tell us our method of highway financing is considered a national model.”
This is the second bond refinance the Treasurer’s office has done in 2012 and the third since Treasurer Loftis entered office in 2011. This recent savings, coupled with the $72 million savings from the previous two refinances means the Treasurer’s Office has saved taxpayers a total of $139 million by properly managing and refinancing existing debt. The $139 million in total bond savings could build approximately 10 elementary schools, buy 2,000 new school busesor build many miles of new highways.