For Immediate Release
Tuesday, 24 April 2001
UNIQUE INTERNET AUCTION
SENDS $75 MILLION TO SC BANKS
Columbia, SC – $75 million in state deposits were offered during BidSC’s thirty-minute auction this morning. Eligible South Carolina institutions placed 117 bids of $137.5 million. Bids opened at 3.800% and the Treasurer’s Office accepted bids from 4.190% to 4.700%.
"Even during the strange past few weeks in the financial world, South Carolina banks bought into BidSC," declared State Treasurer Grady L. Patterson, Jr. "This is the fourth Internet auction in South Carolina history, and the interest and participation continues to show we are on the right track."
The base rate – where the bidding begins for BidSC – is the current 6-month T-Bill. During the previous three auctions, the weighted average rate spread over the 6-month T-Bill was 0.235%. In this morning’s auction, banks drove the weighted spread to 0.425% over the 6-month T-Bill. "We made them an offer they could not refuse," quipped Mr. Patterson, "and these folks helped us make it pay for everyone." South Carolina will realize $1.6 million in interest earnings on the bids.
BidSC was first introduced in July 2000. Auctions are held quarterly for $75 million in six-month state certificates of deposit. BidSC was conceived and instituted to help banks get money when they need it to better serve their borrowing communities. The fairer process also provides higher interest returns to the state on its deposits.
"We used some financial common sense and merged new technologies with market forces and philosophies – that was the birth of BidSC," Mr. Patterson said. "Now, everyone benefits."
Auction results, and final bids for individual banks, can be viewed at the BidSC investment auction Website by clicking on "results". 117 bids were received and 76 were "in the money" (22 Upstate, 19 Pee Dee, 22 Midlands, and 13 Lowcountry).
###
For more information, contact:
David A. Adams, 803/734-0380