Georgia Bonds (Georgia Municipal Bonds)

 

 

Georgia bonds are used to finance crucial infrastructure and development projects in schools, parks and public facilities throughout the state. The state had successfully issued more than $1 billion worth of bonds in its first two public offerings in the early half of 2009. As fn November 3, 2009, the proposed new Georgia bonds to be issued by the end of November 2009 are:[br]

• $85,480,000 General Obligation Bonds, 2009F

• $114,520,000 General Obligation Bonds, 2009G

• $400,000,000 General Obligation Bonds, 2009H

• $100,000,000 General Obligation Refunding Bonds, 2009I

 

The government has earmarked proceeds from these bonds for

• Local school construction

• Road projects

• Public safety projects

• Library development

• Development of post-secondary classrooms and instructional facilities

 

According to the state government:

• State income tax is not applicable on the interest from these bonds

• Interests from these bonds are also exempt from federal tax

• These bonds will mature from 2010 to 2029

• Bonds will be available in the denomination of $5,000

 

How to Buy Georgia Bonds

Individuals who want to buy Georgia bonds need to

• Open a brokerage account at any one of the participating brokerage firms

• Contact their financial advisor, as bond purchase cannot be made directly through the state.[br]

 

Popular Georgia Bonds

Some of the popular Georgia bonds are:

• Hospital Authority of Savannah (GA) bonds: These revenue bonds were issued on behalf of St Joseph’s/Candler Health System (SJC) in series 1998A, 1998B, 1998C and 2003. The ratings on these outstanding $144 million Hospital Authority of Savannah (GA) bonds were affirmed by Fitch Ratings at ‘BBB+’ in January 2009, with “Stable” rating outlook. The affirmation of the rating reflected continued implementation of the strategic improvement plan by the SJC, which continued to drive volume growth and resulted in consistent operating profitability and market share gains.

·        Municipal Electric Authority of Georgia (MEAG) bonds: These $148,065,000 project one subordinated bonds, series 2008B were issued in August 2008 as variable-rate securities, with a letter of credit provided by Dexia. The aim of these bonds was to generate funds for refunding outstanding amounts for 2005B and 2005C bonds. These bonds were assigned an underlying ‘A+’ rating by Fitch Ratings. The ratings were supported by a pledge of revenues from its court-validated, take-or-pay contracts with the respective project that extend through the life of the bonds.