State sells bonds for school and transportation projects

Posted: Thursday, April 10, 2003

ANCHORAGE (AP) -- The state has sold nearly $462 million in bonds to pay for school and university construction and maintenance, as well as highways, ports and harbors and other transportation projects across the state.

The projects were approved by last year's legislature.

The sale Wednesday was the state's first general obligation bond issue in 20 years.

The state Bond Committee got very low interest rates on the two issues included in the sale: 4.069 percent on the larger series, and 3.172 percent on the smaller.

Chester Johnson, the Financial Adviser to the committee, notified Steve Milano, Managing Director of Lehman Brothers in New York that his company had been awarded one of the bonds. Bidding was enthusiastic by the brokers.

The smaller bond issue will be paid off from future federal highway funds, state officials said. The other one has to be paid off by the state between now and the year 2023. Investors don't have to pay federal income tax on the interest from the Alaska bonds.

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