Baton Rouge, LA (March 21, 2025) — On March 11, 2025, the State of Louisiana sold $116.875 million of General Obligation Bonds at an interest rate of 3.045% to refinance outstanding bonds for savings. The refunding consisted of a traditional refunding of the GO Series 2015A and 2015B Bonds that were approaching the call date of 5/1/25 and a tender of outstanding bonds that were not tendered in the 2024 transaction (Series CDE).
In total, the transaction reduced the State’s general obligation debt service by $8.77 million through Fiscal Year 2037 or $7.58 million in today’s dollars (net present value). The Fiscal Year annual savings averages $674,000, and the Net Present Value savings are 6.02% of refunded bonds. The closing date is scheduled for March 25.
On Thursday March 20 the Louisiana State Bond Commission approved funding for a variety of important projects across the state. Louisiana State Treasurer John Fleming, M.D., Chairman of the Louisiana State Bond Commission, said, “Our Treasury Department thoroughly examines every funding request to ensure it is appropriate, cost effective and safeguards taxpayer funds. I am proud of our department’s dedication and commitment to serving the people of Louisiana.”
Here are some of the individual projects approved by the State Bond Commission:
Caldwell Parish Police Jury, Library Project:
$1,125,000 Revenue Notes for improving and expanding the library and restructuring the interim construction loan.
Finance Authority of New Orleans:
$5,000,000 Taxable Loan to establish a loan pool program to provide financial assistance for certain Qualified Projects, including but not limited to, increased resilience for businesses, non-profits, single family housing and multi-family housing and related services, activities, facilities, and properties.
Plaquemines Port, Harbor & Terminal District:
$35,000,000 Revenue Bonds for acquiring, constructing, rehabilitating, developing, improving, and equipping capital improvements, equipment, and infrastructure, including the acquisition of land.
St. John the Baptist Parish Council, Sales Tax District:
$2,000,000 Taxable Sales Tax Bonds for constructing, acquiring, extending, and improving the sewers and sewage disposal facilities and acquiring equipment.
St. John the Baptist Parish Law Enforcement District:
$20,000,000 Limited Tax Revenue Bonds for constructing, improving and renovating law enforcement buildings and other facilities and acquiring vehicles, equipment and furnishings.
The State Bond Commission receives applications from parishes, municipalities, special taxing districts, and other political subdivisions of the State requesting authority to incur debt or levy taxes. State Bond Commission approval is required before any public entity can borrow money or issue bonds. Money for projects is borrowed from banks or other investors and is paid back. These applications are reviewed for compliance with Constitutional and statutory requirements and feasibility, including the ability to repay any indebtedness incurred.
For FY 2025, the State Bond Commission issued $784.045 million in various bonds to refinance outstanding bonds providing the State with $97.8 million in savings through 2044 and has approved 147 debt applications totaling$9 billion and 179 local government elections.
State Treasurer Fleming attributed these achievements to “our team of committed professionals who work tirelessly to serve the taxpayers of Louisiana.”
