Newsroom
For Immediate Release
Thursday, July 16, 2009
Contact: Mary Curtius 703-228-7943 (voice) 703-228-4611(TTY)
Arlington’s First Retail Bond Sale Successful
Residents buy $21 million in bonds to fund schools, Metro, neighborhood improvements
ARLINGTON, Va. – Arlington County residents bought $21.16 million in County bonds this week, as the County netted $80.48 million at an interest rate of 3.07 percent in its 2009 bond sales to retail and institutional buyers.
The County’s Triple AAA bond rating, coupled with the current low market rates, helped it achieve the lowest interest rate since at least 1987. Arlington County residents were given priority July 13 in the County’s first-ever sale to retail investors. County residents bought 39 percent of the $54.01 million purchased by retail investors. All orders from Arlington residents were filled except for a few of the 2014 bonds, where more bids from Arlington residents were received than total bonds offered.
“The record low rates and strong interest of Arlington citizens reflect the strength of the County’s finances and management,” said Board Chairman Barbara Favola. The County’s ability to borrow money at such low rates “helps our dollars go further as we make important investments in our community,” she said. Favola noted that Arlington is the first local government in Northern Virginia to sell its bonds retail.
Of the bonds not sold during the retail sale, senior underwriter Morgan Stanley placed an additional $10.5 million with investors on July 13. The remaining $18.965 million was sold through competitive bids to JPMorgan Chase on July 15.
Of the $80.5 million in bonds, close to $39 million were sold to finance new projects, including:
- Arlington Public Schools building projects
- Land acquisition related to the Nauck Town Center project
- Completion of Neighborhood Conservation Projects
- Metro rail car and station improvements
The remaining $42.5 million was issued to refund previously issued bonds. The refunding of the bonds will yield debt service savings in Fiscal Year 2010.
More information is available on the County’s Web site.
Arlington, Va., is a world-class residential, business and tourist location that was originally part of the "10 miles square" parcel of land surveyed in 1791 to be the Nation's Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use, and received the Environmental Protection Agency's highest award for "Smart Growth" in 2002. Home to some of the most influential organizations in the world - including the Pentagon - Arlington stands out as one of America's preeminent places to live, visit and do business.
