[Archived] News Release- City of Alexandria Sells Bonds at Historic Low Rate

City Press Release


	City of Alexandria, Virginia Office of the City Manager Alexandria City Hall 301 King Street, Suite 3500 Alexandria, Virginia 22314-3211 www.alexandriava.gov Telephone: 703.838.4300 Fax : 703.838.6343

anuary 15, 2004
PIO 008-04
For Immediate Release

CITY OF ALEXANDRIA SELLS BONDS
AT HISTORIC LOW RATE

On Jan. 6, the City of Alexandria sold $64.7 million in general obligation bonds at a true interest cost of 3.744% interest, which is the lowest interest rate on City bonds in known history. The City received 11 bids with interest rates ranging from 3.744% to 3.89%. The winning bid was from Citigroup Global Markets, Inc.
The City received bids over the Internet, using an innovative, private sector web site to receive and to calculate all of the bids.
“The 3.7 % true interest cost is the lowest known rate for the issuance of City bonds,” said Phil Sunderland, City Manager, “and compares favorably with the 4.6% true interest cost for the City’s 2001 bond issuance, the last time the City sold bonds.” This reflects not only the City’s top AAA/Aaa credit ratings, but also the current favorable interest rate market conditions.
Last month, Moody’s Investors Services, Inc. and Standard & Poor’s credit rating agencies reaffirmed the City of Alexandria’s double triple-A bond ratings, the highest ratings possible, in conjunction with the issuance last week of $64.7 million in new general obligation bonds. The triple-A bond ratings will allow the City to borrow money at very low, tax-exempt rates, in order to fund capital projects like the planned new T.C.Williams High School, park improvements, roads, sewers and City facilities.
Alexandria remains as one of only 36 cities and towns and 30 counties in the United States with perfect bond ratings from the nation’s two leading municipal credit rating agencies.