March 14 (Bloomberg) -- Massachusetts will sell bonds to investors almost every month to lower borrowing costs, Treasurer Steven Grossman said.
The program, MassDirect Notes, starts March 17 and is modeled on the U.S. Treasury’s TreasuryDirect service. It will allow investors to buy bonds when it’s convenient instead of waiting for the state’s infrequent sales.
“MassDirect Notes will help us sell more bonds to individual investors, and it will create the kind of competition and savings that improves the bottom line for the Commonwealth,” Grossman said in a statement.
Massachusetts will offer general-obligation bonds, which are backed by the state’s taxing power, over two weeks in most months, the release said. Previously, the state held single-day retail order periods as part of infrequent bond sales.
The state will sell the securities, rated AA+ by Standard & Poor’s, through TMC Bonds, an electronic platform available to 120,000 brokers, the news release said.
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