Georgia sold more than $880 million in bonds to invest in education, public safety, infrastructure, and other improvements across the state.
The bonds were issued in three series. The Series 2023A bonds consist of almost $417.7 million and mature between 2024 and 2043, yielding between 2.49% and 3.79%. The Series 2023B bonds, which are federally taxable, consist of $203.6 million and mature between 2024 and 2043, yielding between 4.3% and 5.11%. The Series 2023C bonds consist of $259.5 million and mature between 2024 and 2033, yielding between 2.5% and 2.98%. The securities received a rating of Aaa from Moody’s Investors Service, AAA from S&P Global Ratings, and AAA from Fitch Ratings.
The rating reflects “the state’s proven willingness and ability to maintain fiscal balance and a broad-based, growth-oriented economy that supports solid revenue gains over time,” according to Fitch.
The issuance comes amid population and job growth in Georgia that surpasses national levels. However, Georgia lags behind national averages in wealth indicators such as education performance.
More than half of the issuance, about $463 million, will go toward Georgia’s education initiatives. These include upgrades at Georgia’s university system and its technical college system, as well as improvements to the state’s public schools and libraries. Additional funding will go toward Georgia’s police departments and corrections facilities, a clean drinking water program, and other state projects.
The bonds are general obligations of the state, backed by its full faith and credit.
BofA Securities Inc, Citigroup Global Markets Inc, J.P Morgan Securities LLC, and Morgan Stanley & Co LLC served as underwriters on the issuance.