Two local government agencies took advantage of historically low interest rates this month to refinance over $1 billion in debt — and save hundreds of millions of dollars.
The San Diego County Airport Authority sold $700 million in bonds, with $280 million to be used for new construction and the remainder to refinance existing debt. The authority said it will save more than $100 million in financing costs over the next 20 years.
SANDAG refinanced $443 million in earlier debit, reducing future payments by $93 million over the next 29 years.
Both agencies reported strong investor interest because of the county’s diverse and expanding economy with a growing population and a high level of wealth.
“This incredibly successful bond sale reflects the strong financial position of the Airport Authority and our long track record of good fiscal stewardship,” said Kim Becker, president and CEO of the airport authority. “We have repeatedly delivered excellent financial results and have brought our capital development projects in on time and under budget, and investors have noticed.”
SANDAG said growing revenue from the TransNet sales tax has strengthened the regional planning agency’s financial position. Annual revenue from the half-cent tax has increased from $95.7 million in 1989 to $312.3 million in 2019.
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