(Washington, DC) - Chief Financial Officer Natwar M. Gandhi announced today that the sale of the District’s first income tax bonds “has exceeded all expectations.”

Gandhi said the plan was to sell $445 million of the AAA-rated bonds over two days to individuals Tuesday and institutional investors on Wednesday. Based on the initial response the offering was expanded to institutions today and was increased to $800 million, making it one of the largest municipal bond offerings this year. The average interest rate is 4.84 percent.

Gandhi stated, “The enthusiasm for these bonds from both individuals and institutional investors is a resounding endorsement of the sound security provided to investors by the District. As the sale progressed, the response was so positive that our underwriters recommended increasing the size and making it available to all investors at one time.”

The initial plan included $310 million for new capital projects and $135 million to refund General Obligation bonds. The increased figures are approximately $500 million for capital projects and approximately $300 million to refund GO bonds.

Mayor Adrian M. Fenty said, “The astounding response to the sale of District bonds reflects the market’s endorsement of our continued efforts to provide services at the highest level of quality and efficiency. I applaud CFO Gandhi and his staff for their efforts in making this a success.”

Council Chairman Vincent C. Gray said, “This is yet another sign of the District of Columbia government’s credibility as a jurisdiction capable of stellar budgetary and financial management.”

Councilmember Jack Evans, chairperson of the Committee on Finance and Revenue, said, “This is a very positive response from the investment community is the result of the responsible management of the District’s finances by the Chief Financial Officer, the Council and the Mayor.”