$725.3 Million Bond Sale to Fund Capital Improvement Projects Statewide
While the economy is a top concern for families and businesses across the state and nation, the Lingle-Aiona Administration's work to invest in infrastructure and advance capital improvement projects are more important than ever.
The bond sale will fund capital improvement projects that will bolster Hawai`i's infrastructure and create jobs in the construction and related industries.
A revenue bond sale, completed this week, will fund various State capital projects, including public school facilities, University of Hawai`i projects and other capital projects statewide.
The $725.3 million bond sale included $500 million of new money proceeds to fund new capital improvement projects and $225.3 million of refunding bonds to refinance outstanding debt. The refinancing of existing debt resulted in a reduction in debt service of approximately $100 million per year in fiscal years 2010 and 2011.
Moody's Investors Service, Standard & Poor's Ratings Service and Fitch Ratings affirmed the State's bond ratings of Aa2, AA and AA, respectively.
Standard & Poor's Ratings Service cited, as one of the State's credit strengths, "management's well-established, proactive budget monitoring practices, including frequent revenue forecast updates from the Council on Revenues, which facilitates prompt identification of potential budget adjustments."
"The current economic climate posed significant challenges to the State in issuing these bonds. However, we were able to maintain our high credit ratings and our bonds were well-received by the bond market," Governor Lingle said of the bond sale, which was completed with an average interest rate of 4.12 percent.
"Attracting this new capital is integral to our plan to create new jobs in the construction and related industries," she added.
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"$725.3M in Hawai`i bonds snapped up by investors," Honolulu Advertiser, June 10, 2009
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Read the news release.
