KRWG News – SANTA FE, N.M. (KRWG) The state Board of Finance has approved the sale of $18.6 million in general obligation bonds to pay for capital improvement projects approved by voters in November.
The board on Tuesday also selected a Milwaukee, Wis.-based firm, Robert W. Baird & Co., as bond underwriter.
The company was one of 14 bidders. An underwriter buys the bonds and sells them to investors in the market. The company offered the state a "true interest cost" of 2.44 percent.
New Mexico's general obligation bonds are rated Aaa (triple-A), which is the highest by Moody's Investors Service.
Finance and Administration Secretary Richard May said a key to the bond rating is the state maintaining adequate cash reserves.
Voters approved bonds to finance school projects, senior citizen facilities and library acquisitions.
Copyright 2011 The Associated Press. KRWG