[Archived] City of Alexandria Receives Record-Low 1.5% Interest Rate on Sale of Bonds for Capital Projects and Land Acquisition for West End Hospital

­­For Immediate Release: December 8, 2021

After major credit rating agencies reaffirmed the City of Alexandria’s top bond ratings, the City government has earned the lowest interest rate in its modern history on the competitive sale of new general obligation bonds. The bonds will fund capital improvement investments for the City and Alexandria City Public Schools, and the first payment for purchase of land for the redevelopment of Landmark Mall as the future site of Inova Alexandria Hospital.

“Attaining this record-low interest rate will save Alexandria taxpayers millions of dollars over the life of these bonds," said City Manager Mark Jinks. "Our stable economy, coupled with sound financial management policies and practices, are helping us to achieve goals necessary to Alexandria's future growth, sustainability, and quality of life.”

The City issued tax-exempt bonds on November 30 to fund $164 million of capital investments, including $143 million for capital projects to address stormwater management; school capacity; broadband initiatives; the co-location of the City’s health and human service agencies; and $21 million for Landmark Mall land that will be redeveloped. The bonds, which will be repaid over 20 years, were sold at a true interest cost of 1.53% to global financial services firm JPMorgan Chase & Co. True interest cost represents the total cost of the debt, and includes interest payments, fees and other components. The City received seven bids from various banks and financial groups. 

The low interest rates are the result of the City’s “AAA” and “Aaa” credit ratings from S&P Global Rating Services and Moody’s Investors Service, respectively, which were reaffirmed in November. The City has maintained these top grades from both major bond rating agencies since 1992. The higher the rating, the lower the interest rate required by bond investors. The City’s highest possible bond ratings and low interest rates result in lower than budgeted borrowing costs.

For inquiries from the news media only, contact Kelly Gilfillen, Acting Director of the Office of Communications & Public Information, at kelly.gilfillen@alexandriava.gov or 571.208.9001.