CHARLESTON, W.Va. – Investors have shown keen interest in the toll bonds that the West Virginia Parkways Authority sold on Wall Street this week.
The authority has marketed $ 333 million in bonds that will fund future highway projects in a 10-county region of southern West Virginia.
The bonds sold out quickly. Gov. Jim Justice said Thursday there were plenty of buyers who were left out. He said the orders totaled $ 3.8 billion.
“When we go into the market, there are 11.6 times more people trying to buy our bonds than the $ 333 million,” Justice said.
The bond sale also generated a premium of $ 90 million for a total sale of $ 423 million.
The Parkways Authority was able to secure an interest rate of 2.62% on the bonds. They will be repaid over a period of 30 years using the toll revenue from the toll motorway.
Parkways Authority chief executive Jeff Miller said the success of the sale is a testament to the success of the toll highway.
“I am delighted with Wall Street’s response to our bonds. It is a testament to the governor’s incredible vision for justice to use one of the most important assets of our state’s highway system: the West Virginia Turnpike, ”Miller said in a press release.
It looks like Wednesday’s bond sale benefited from good tagging timing. According to a press release, “Market conditions amplified the success of the bond sale with a rally in the Treasury market and an unusually strong day in the municipal market with all investors keen to put their money to work.” .
The bond sale is the second for the Parkways Authority under the Justice’s Road to Prosperity program. The bond money will not fund Turnpike projects but rather other highway projects in the 10 counties surrounding the Turnpike. Toll highway projects are financed by separate bonds.
The authority doubled tolls on the toll highway in 2019 to pay the recent deposit.