A MARTA bus at the Decatur, GA MARTA station. File Photo by: Dan Whisenhunt

MARTA’s Board of Directors has given the go-ahead to a $90.3 million bond refunding that it says will lower borrowing costs and save nearly $6 million in future interest payments.

In a news release, the Metropolitan Atlanta Rapid Transit Authority said it is locking in a 2.3% interest rate with Wells Fargo. The current interest rate for the $90.3 million loan is 5%.

MARTA said it went through a competitive solicitation process with six banking institutions before settling on Wells Fargo for the eight-year term.

“This is another example of the fiscally prudent steps MARTA is taking to ensure our long-term sustainability as the major provider of transit services for our region,” Board Treasurer Frederick L. Daniels Jr. said in the release.

MARTA credited its upgraded bond rating by Moody’s Investors Service last year as a reason for it being able to borrow at a better interest rate.