Louisiana has saved $12 million from a debt refinancing that took advantage of lower interest rates.
State Treasurer John Kennedy announced the savings figure Tuesday, after the state completed its refinancing of the $229 million in existing bond debt.
The state sells general obligation bonds to investors for upfront cash to pay for construction projects. The borrowing is paid off over time with interest. The refinancing lowers that multiyear repayment rate.
The refinancing had been delayed briefly because of a disagreement between Kennedy's office and Gov. Bobby Jindal's administration over the financial paperwork. But the two sides reached a compromise.
Next up is a plan to borrow another $200 million to replenish the escrow account that pays for state-financed construction work.