(The Center Square) – The Louisiana State Bond Commission approved up to $300 million in borrowing Wednesday to pay for state construction projects.
State government sells bonds to investors to raise money for capital outlay, such as spending for building maintenance, new construction and roads and bridges.
While some bond deals are negotiated, Wednesday’s bond sale was competitively bid and commissioners legally were obligated to accept the bid that offered the lowest interest rate, State Treasurer John Schroder said.
Of the seven firms that offered proposals, J.P. Morgan Securities was the low bidder, offering an interest rate of just over 2.2%. The commission approved the general obligation bond sale without objection.