California Sells $150 Million in Bonds to Finance Home, Farm Purchases for Veterans

By Chris Wack

California sold $150 million in bonds to finance the purchase of homes and farms for California veterans.

The state issued the Veterans General Obligation Bonds, Series CV, in a competitive auction with maturities ranging from Dec. 1, 2025, to Dec. 1, 2054, according to documents posted Thursday on MuniOS.

The interest on the bonds will be payable semiannually on June 1 and Dec. 1, beginning June 1, 2025. Interest rates for the non-AMT bonds range from 2.75% to 3.85%.

The issuer sold $34.3 million in CV term bonds due Dec. 1, 2049, with an interest rate of 4.1%, and $47.4 million in CV term bonds due Dec. 1, 2054 with an interest rate of 4.15%.

The bonds authorize the issuance of obligations to provide funds for the financing of contracts for the purchase of homes and farms for California veterans under the CalVet Home Loan Program.

Under the loan program, the California Department of Veterans Affairs acquires residential property to be sold to eligible veterans. These acquisitions are financed principally with the proceeds of Veterans G.O. Bonds and revenue bonds and from other moneys available in the Veterans' Farm and Home Building Fund of 1943.

Moody's Ratings rated the bonds Aa2, while S&P Global Ratings rated them AA+ and Fitch assigned a rating of AA.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

10-11-24 1103ET