Hennepin County will take advantage of lower interest rates when it sells $128.1 million in bonds next week for infrastructure projects, including work on the Lowry Avenue Bridge, says Finance & Commerce.
The county stands to save $4 million on its largest-ever bond offering because the federal government has resumed buying Treasury bonds in an effort to keep interest rates low. The county also has a AAA bond rating, which will help in the bond sale.
“I’m very excited to see how things turn out,” said John Villerius, Hennepin County’s investment and debt management officer, told F&C. He called it “incredible timing.”
F&C says: “Since the Fed opted to buy more Treasury bonds last week, the interest on 10-year municipal has dropped 12 basis points, from 2.78 percent to 2.66 percent. Rates on 20-year bonds have fallen from 3.8 percent last week to 3.7 percent this week, according to Villerius.”
Projects to be funded include: $62.6 million for capital improvements; $37.4 million to continue construction of the Lowry Avenue Bridge; $15 million for library improvement projects; $10 million for a new Hennepin County Medical Center hyperbaric chamber and a county finance and human resource system; and $3.1 million for Minnehaha Creek Watershed conservation projects.