Comptroller Susan Combs Announces Record-Low Interest Rate for Texas Short-Term Notes
Sep 01, 2014 | 1368 views | 0 0 comments | 1 1 recommendations | email to a friend | print

Comptroller Susan Combs Announces Record-Low Interest Rate for Texas Short-Term Notes

(AUSTIN) — Texas Comptroller Susan Combs announced today’s sale of $5.4 billion in Texas Tax and Revenue Anticipation Notes (TRANs) received an interest rate of 0.1326 percent - the lowest rate ever received for the state’s one-year notes.

"The best ratings from Wall Street ratings firms and strong demand for Texas notes helped drive down the borrowing cost," Combs said. "Buyers bid about $19.6 billion, more than triple the amount offered for sale. The competitive bids for today’s sale show that investors are very confident in the Texas economy and the direction it’s heading."

The previous low interest rate received for the state’s one-year notes was 0.2008 percent in 2013.

Texas has sold annual TRANs since fiscal 1987. Money from TRAN sales is used to help fund expenditures such as public school payments early in the fiscal year and manage cash flow between the start of the fiscal year and the arrival of tax revenues later in the year.

The $5.4 billion in notes from today’s sale will be repaid on Aug. 31, 2015.

 

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