(Washington, DC) On November 20, the District of Columbia Office of Finance and Treasury sold $250 million of Tax Revenue Anticipation Notes (TRANs) to finance the citys seasonal cash needs for fiscal year 2004, which began on October 1. The notes were sold via competitive sale and were purchased for resale to investors by Banc of America Securities. The interest rate yield on the notes was 1.12 percent an all-time low rate for District notes by a significant margin. The notes are due and payable on September 30, 2004, the last day of the Districts fiscal year.
This sale is a very significant accomplishment for the District of Columbia, indicating continued improvement and increased confidence in the citys financial condition, said Chief Financial Officer Natwar M. Gandhi.
The District received the highest short-term rating from all three major rating agencies (Moodys, Standard & Poors, and Fitch Ratings) on these notes, without the benefit of credit enhancement (i.e., a bank letter of credit).
The rating agencies have expressed the highest level of comfort that the District will repay these notes when due. This marks the first time in at least 10 years that the District has been able to benefit from issuing short-term notes without the expense of credit enhancement, said Treasurer N. Anthony Calhoun.