San Diego’s regional planning agency refinanced hundreds of millions of dollars in sales tax revenue bonds, lowering long-term borrowing costs — thus saving taxpayers tens of millions — it was announced Friday.
The San Diego Association of Governments refinanced the $433.35 million in revenue bonds in its role as the San Diego Regional Transportation Commission.
“SANDAG is pleased to be able to bring back these savings to families because this opens new opportunities to develop greater infrastructure projects that can transform our region,” said SANDAG Chief Financial Officer André Douzdjian. “Any time we are able to save taxpayers money, it is a win-win for everyone.”
According to the agency, the transaction will save the region an estimated $40 million through 2042.
“Proceeds from the Series 2023 Bonds were used to refund and fix-out all the Series 2008 variable rate bonds and a portion of the Series 2019A Bonds,” a statement from the agency reads. “In the process, SANDAG eliminated all risks related to long-term variable rate bonds and interest rate swaps, simplifying the bond portfolio and lowering long-term borrowing costs.”
Following the signing of the deal, 52 investors ordered $1.3 billion in bonds, allowing the agency to negotiate a favorable borrowing rate of 3.22% for Series 2023 Bonds due in 2042.
– City News Service
