What In The World Is Virginia Doing?

From the Virginia Resources Authority comes this announcement on Friday:

The Virginia Resources Authority has just sold $215 million in infrastructure revenue bonds – a real triumph and nothing short of miraculous given the economic situation. This represents the largest transaction in the pooled financing program in VRA history.

The bonds will finance a number of projects in localities across Virginia. The projects are varied in scope, reflecting VRA’s broad support in 14 areas for community investment including public safety and local government buildings. Participating localities will construct a variety of projects including: upgrades to bridges and wastewater treatment plants, replacement of water and sewer lines, and construction of a new firehouse, a new library, and a public safety academy.

“Bricks and mortar projects mean jobs and income in Virginia communities,” said Sheryl Bailey, Executive Director of the Virginia Resources Authority. “We can’t over-emphasize the importance of such projects in stimulating the local and state economy. Infrastructure is a key to America’s economic recovery.”

Important?  You bet!  With funding comes improvements, with improvements comes jobs, and with jobs comes tax revenue, quality of living and any other number of benefits.  Virginia has had a strong bond rating for many years, meaning low loan rates for localities, and $215 million will go a long way to localities being able to move forward with planned improvements.  No word in the press release on whether any of those projects are planned for the Blacksburg/Christiansburg/Radford area, but we'll see moving forward.

Updated 11/25 10:02am - This is the largest ever transaction in the history of VRA's pooled financing program, and represents 25% of VRA's financing in that program to date ($862 million total).  You can read the entire November 21 press release at http://www.virginiaresources.org/news.shtml.

Comments

[Eric]

How big was $215 million in historic offerings for the state or the VRA? In the investment finance world that sounds very reasonable, was this a particularly large offering historically for the VRA? A lot of money is chasing "safe" investment options, so muni's from a strong state are always attractive to upper income people for the tax benefits.

[Jeremy Hart]

Eric -

The press release says that it's the largest transaction ever in the history of VRA's "pooled financing program". I'm not sure how it varies from other transactions, but later in the release it says that, to date, VRA's pooled financing program has participated in $862 million worth of borrowing. You can read the whole November 21 press release at http://www.virginiaresources.org/news.shtml.

If I had to guess, a "pooled financing program" would allow municipalities to join together in soliciting funds - strength of many, enjoying the extremely strong credit position that Virginia has created.