Pennsylvania Budget Secretary Charles B. Zogby said the state has closed on a $950 million general obligation bond with Bank of America Merrill Lynch.
The lender was among six companies that offered bids. It was successful with a bid offering a 2.904 percent interest rate.
Zogby said the sale yielded the lowest-ever interest rate.
He credits the state's strong fiscal management and good bond ratings.
The bond will allow Pennsylvania to finance public capital projects, provide grants to local water and sewer projects and provide funding to the Growing Greener program