BATON ROUGE - Today, Commissioner of Administration Kristy Nichols announced that the state will again generate savings through bond refinancing. In 2008, the state, along with the Department of Economic Development, entered into a Cooperative Endeavor Agreement with the New Orleans Federal Alliance and Algiers Development District of the City of New Orleans to fund a mixed-use development project at the Naval Support Activity in New Orleans. The estimated savings that will be generated from refinancing a portion of these bonds is $1.7 million over the life of the bonds.
This newest round of savings comes one week after the Commissioner announced an estimated $8.2 million in savings for the state, bringing today’s total state savings through bond refunding to nearly $10 million. Since 2008, the three major credit rating agencies have upgraded Louisiana’s credit rating eight times. As a result, the state is able to borrow at lower interest rates. “Generating savings twice in one month by refinancing these outstanding bonds shows how we are able to maintain smart financial practices and save taxpayers and the state money,” said Commissioner Nichols.