The District of Columbia is preparing to sell some $900 million in income tax secured revenue bonds in November 2012. The offering will include new money to fund the District’s FY 2013 Capital Improvement Plan and refunding of a bond anticipation note issued in 2010 to fund infrastructure at the Capper Carrolsburg development in Southeast DC.
Interest on the bonds will be exempt from federal and District income taxes. The bonds will have fixed interest rates to be negotiated with a syndicate of underwriters led by Goldman, Sachs and including J.P. Morgan and Loop Capital Markets.
District Chief Financial Officer Natwar Gandhi said, “This bond sale is another demonstration of the city’s financial strength. These high ratings will help the District achieve the lowest possible rates, which will save millions that can be used to pay for vital programs or and/or to increase the District’s savings account.”
The District believes that the new bonds will receive the same ratings as its currently outstanding income tax bonds. Currently outstanding Income Tax Secured Revenue Bonds are rated AAA from Standard & Poor’s, Aa1 from Moody’s Investors Service, and AA+ from Fitch Ratings.