Hawai’i sells $ 1.88 billion in general bonds
HONOLULU – The state has sold a record $ 1.88 billion in general bonds, the highest amount of bonds ever sold by the state, Governor David Ige announced earlier this month.
The money from the sale will be used to finance new and existing projects in support of the state’s economy.
“This bond sale will provide continued funding for critical state construction projects, including schools, highways, airports and ports,” Ige said in a statement. “These investments are improving services for the people of Hawaii, creating jobs that strengthen our communities, and helping the state’s economic recovery as we look beyond the pandemic.”
Before the bond was sold, Ige and the government finance team met with the three main rating agencies (Fitch, Moody’s and Standard & Poor’s). Following the presentation, Moody’s confirmed the state’s AA2 rating and revised the state’s outlook to positive, reflecting “a significant turnaround in the state’s economic and financial situation,” according to the report. from Moody’s.
S&P confirmed the AA + rating and revised the outlook to stable, saying that “the revised outlook reflects our view that despite the country’s most stringent pandemic response measures and the continued controlled reopening of its economy, the Hawaii’s economic momentum has shifted up enough to provide a more manageable operating environment.
Fitch also confirmed his AA rating with a stable outlook for Hawai’i.
The state’s extensive marketing efforts included live presentations to investors via video conference. The government’s strong credit and long-term strength have appealed to a wide range of buyers, with more than 120 institutions placing more than $ 8 billion in bond orders – a record number of orders for the government . Bonds were also purchased by Hawaiian residents and local institutions as well as a number of international investors.
In addition, the prepayment that refinances part of the government’s existing debt will generate $ 76.8 million in present value savings.