BATON ROUGE, La.— Louisiana borrowed about $300 million on Wednesday to refill the account that pays for state-financed construction work.
The Bond Commission, which oversees construction spending, approved the general obligation bond sale without objection.
The state borrows money by selling bonds to investors for upfront cash. The debt will be paid over 20 years with a 2.2% interest rate. J.P. Morgan Securities LLC was the winning bidder for the bond sale because it offered the lowest interest rate.
Without a new infusion of cash, Louisiana would run out of money for items in the state construction budget like building repairs, economic development projects, roadwork and lawmakers’ local projects.