For Immediate Release - May 16, 2011

Grossman Announces New $1,000 Denomination Build Mass Bonds

Lower Minimum Makes Investment in the Commonwealth Available to More People

State Treasurer Steven Grossman today announced the upcoming availability of the new $1,000 Build Mass Bonds, a smaller denomination that will make an investment in the Commonwealth's infrastructure accessible to more individuals. A $1,000 Massachusetts bond has not been offered to investors in more than two decades.

"Massachusetts is a great investment, and the Build Mass Bonds program is a great way for our citizens to get involved in the future of the Commonwealth," said Grossman. "These bonds are about more than interest rates and maturity dates - they're about giving more people an opportunity to invest in our shared infrastructure, the roads, bridges, parks and campuses that they utilize on a daily basis."

Typically, Massachusetts bonds only come in $5000 denominations. Grossman said that the idea to also offer a $1,000 denomination was brought to his attention by State Representative Kate Hogan (D -Stow).

"I first brought the idea to Treasurer Grossman last year: adjust the amount required to buy bonds and reach a larger pool of investors. Ask our citizens to become part of the local recovery and finance capital projects like roads and bridges," said Representative Hogan. "The Build Mass Bonds program is a call to citizen participation."

The general obligation Build Mass Bonds will be offered to individual investors during a special order period beginning Friday, May 20 th and ending Monday, May 23 rd . The interest earned from the bonds is exempt from federal and state taxes. The associated interest rate will be set this coming Friday, the first day of the offering. The bonds have a two-and-a half year maturity schedule, maturing on February 1, 2014.

Treasurer Grossman said that a positive opinion on Wall Street about the Commonwealth's fiscal management will help the state borrow in a cost-effective manner. Presently, Massachusetts has the second-highest bond rating from both Fitch and Moody's credit rating firms and received a Positive Outlook classification from Standard and Poor's in February of this year.

The Build Mass Bonds program is a part of an overall bond issuance that will generate $518 million in funding for the state. The money will be used predominantly to pay for capital infrastructure projects. Potential investors can consult with their financial advisor or, starting tomorrow, go to www.buildmassbonds.com for more information on purchasing the bonds.



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