MONTGOMERY -- The state will save approximately $5 million as a result of the refinancing of almost $30 million in bonds, said Governor Bob Riley.

The bonds were originally issued in 1999 for renovations and improvements to state office buildings. State law generally requires a minimum savings of three to five percent before bonds may be refinanced. The refinanced bonds will save significantly more --18% -- over the remaining term of the bond.

“Any day we can save millions of dollars is a good day for Alabama,” said Governor Riley. “Just like many families have refinanced their home mortgages to take advantage of low interest rates, the state is taking this smart fiscal action.”

The bonds were issued by the Alabama Building Renovation Finance Authority, which owns four of the most visible buildings in downtown Montgomery’s capitol complex: the Folsom Administrative Building, the Lurleen B. Wallace Building, the Department of Archives and History Building, and the Public Safety building. Governor Riley, State Treasurer Kay Ivey, and Acting Director of Finance Bill Newton are the members of the Alabama Building Renovation Finance Authority.

“We routinely check the bond market for opportunities to refinance state debt,” said Treasurer Ivey. “The rates were low and the timing was right.”