NC Treasurer Folwell announces $252.6M in GARVEE bonds

Marks 8th round of GARVEE bonds in past 14 years

State Treasurer Dale Folwell

RALEIGH — State Treasurer Dale Folwell has announced $252.6 million in Grant Anticipation Revenue Vehicle Bonds known as GARVEE bonds.

GARVEE bonds allow for the state to pledge future federal highway funds to pay debt service.

“We’re very pleased to be able to help in providing funding for much-needed transportation projects across the state,” Folwell said in a press release. “I’m appreciative of the department’s staff with the State and Local Government Finance Division and the Local Government Commission for their hard work on this issuance. It’s an amazing and historical rate that they were able to get for these bonds.”

According to the press release by Folwell’s office, the funds will be used to accelerate construction on a variety of N.C. Department of Transportation projects. The Local Government Commission and the Council of State approved the bonds on Aug. 3, 2021. Additionally, the state’s GARVEE program is rated A+ by Fitch, A2 by Moody’s and AA by S&P.

This round of GARVEE bond sales is the eighth spanning the last 14 years.

According to the statement, “The bonds were awarded to an underwriting syndicate led by BofA Securities. Barclays, Citigroup, J.P. Morgan, Loop Capital Markets and Wells Fargo Securities are also members of the syndicate.”

The bonds will reach maturity in 15 years and the program is structured to achieve approximately level debt service. The 2021 GARVEE bonds are scheduled to close on Sept. 16, 2021. Folwell’s office says that including 2021 bonds, the “total amount of GARVEE Bonds outstanding will be approximately $1.1 billion.”

The project list provided by the state treasurer includes:

  • Orange County, I-40 Widening, from the I-85 split at Exit 163 to the Durham County line, widening approximately 11 miles from four to six lanes to improve capacity and safety. It will also upgrade the NC 86 interchange (Exit 266).
  • Forsyth County, I-74 Winston-Salem Northern Beltway, Eastern Section, from US 311 to SR 2211 (BauxMountain Road). Construction of a multi-lane, divided freeway to complete an additional segment of I-74.
  • Forsyth County, I-74 Winston-Salem Northern Beltway, Eastern Section, from I-40 to US 421/NC150 (Salem Parkway), construction of a multi-lane, divided freeway.
  • Forsyth County, I-74 Winston-Salem Northern Beltway, Western Section, constructing a new interchange between the Winston-Salem Northern Beltway and existing US 52 north of Winston-Salem to complete the connection of I-74 and provide connectivity to the Northern Beltway.
  • Craven County, US 70 Havelock Bypass, from north of Pine Grove to south of Havelock, building a multi-lane, divided freeway to relieve congestion in and around the Cherry Point Marine Corps Air Station and the city of Havelock, separating through-traffic from military base traffic.
  • Cumberland and Robeson counties, Future I-295 Fayetteville Outer Loop, from I-95 South in Robeson County to NC 24/87 (Bragg Boulevard). Construction of a multi-lane, divided freeway to relieve congestion in and around Fayetteville and improve access to the Fort Bragg military complex by separating through-traffic from local traffic.
  • Franklin and Wake counties, US 401 widening, from NC 96 in Wake County to SR 1103 (Flat Rock Church Road/Clifton Pond Road) in Franklin County, widening the existing facility to a four-lane, divided roadway to improve capacity and safety of this key regional artery.
  • Burke, Caldwell and Catawba counties, US 321 Widening, from north of US 70 in Catawba County to US 321A in Caldwell County, widening existing roadway to six lanes and constructing a new bridge over the Catawba River to improve the capacity and safety of this key regional artery.
  • Buncombe and Henderson counties, I-26 Widening, from US 25 Business in Henderson County to NC 280 in Buncombe County near the Asheville Regional Airport, adding lanes to improve the capacity and safety.
About A.P. Dillon 489 Articles
A.P. Dillon is a North State Journal reporter located near Raleigh, North Carolina. Find her on Twitter: @APDillon_