TEXAS GETS RECORD-INTEREST ON SHORT-TERM NOTES

  

The State of Texas has announced a record-low interest rate for its short-term notes.

State Comptroller Susan Combs announced Tuesday’s sale of $5.4 billion in Texas Tax and Revenue Anticipation Notes received an interest rate of 0.13-percent — the lowest rate ever received for the state’s one-year notes.

Combs says the best ratings from Wall Street ratings firms and strong demand for Texas notes helped drive down the borrowing cost.

Combs added that buyers bid about $19.6 billion, more than triple the amount offered for sale—which she says shows that investors are 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 0.20-percent in 2013.

Money from 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 Tuesday’s sale will be repaid on Aug. 31, 2015.