The Virgin Islands Public Finance Authority (PFA) recently closed on its sale of $247 million of gross receipts taxes bonds, Government House has announced.
The bond sale comes at a much-needed time and will provide funding for the Paul E. Joseph Stadium’s construction, capital funding for the Juan F. Luis and Schneider Regional Medical Centers, and provide funding for “outstanding Virgin Islands bonds to achieve interest rate savings,” according the press release.
Government officials, bond counsel and staff prepare for a bond issue closing on the sale of $247 million of Gross Receipts Taxes Bonds. The closing took place at the offices of the V.I. Public Finance Authority on St. Thomas.
Because the current market lends itself to low interest rates, the Government was able to benefit, more pointedly the PFA, which sold $221 million of new gross receipts taxes and paid off $233 million of bonds issued in 2003. As a result of the refinancing, the V.I. Government will realize $15 million in savings over the course of 20 years, with a present value of $9.6 million, the release said.
The release concluded by noting that the current value savings were more than 4 percent of the total amount of the bonds that were refunded, making it a good purchase on the government’s behalf, as it represents a bargain by industry standards.
Tags: bonds
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