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State Treasurer Elizabeth Muoio

Treasury prices more than $4 billion in pandemic bonds

By Nikita Biryukov, November 17 2020 3:52 pm

The State Treasury Department priced more than $4 billion in bonds meant to shore up its finances amid the pandemic Tuesday.

“We are extremely pleased with today’s outcome,” State Treasurer Elizabeth Maher Muoio said. “We believe the significant oversubscription we witnessed and the favorable interest rate we received is a sign that investors have faith in New Jersey’s fiscal outlook.”

New Jersey is forecasting just shy of $4.3 billion in proceeds from the bonding, which was made possible by the COVID-19 Emergency Borrowing Act. The state expects the true interest cost of the borrowing to fall under 1.95%.

They said the bond was oversubscribed, but the sale and its pricing won’t be approved until at least tomorrow.

Republican lawmakers have long criticized the bonding plan, claiming it would increase, not decrease, the state’s debt in the long-run.

They repeated many of those same arguments on Tuesday, chiding Gov. Phil Murphy for the absence of a schedule for debt service payments and for directing roughly $2 billion of the funds to the state’s surplus.

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