BATON ROUGE, La. (AP) — Louisiana is borrowing $350 million to keep money flowing to state-financed construction projects.
The Bond Commission that oversees the construction spending approved the general obligation bond sale without objection Thursday.
The state borrows money by selling bonds to investors for upfront cash. The debt will be paid over 20 years with a 2.2% interest rate.
That’s a cheaper rate than the 3.2% that Louisiana received in its last general obligation bond sale in February 2019. Citigroup Global Markets was the winning bidder for the bond sale because it offered the lowest interest rate.
The commission has sought to block Citigroup from involvement in other state borrowing deals because of the bank’s firearm restriction policies for corporate customers.