HONOLULU (KHON2) — On Thursday, Governor David Ige announced in a press release, that the State of Hawai’i has recently sold $1.88 billion in general obligation (GO) bonds which according to Ige, is the highest amount of bonds ever sold by the state.
Ige said the funds will be used for new and existing projects which will in turn support Hawai’i’s economy.
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“This bond sale will provide ongoing funding for critical state construction projects including schools, highways, airports, and harbors,” Ige said. “These investments improve services for the people of Hawai’i — create jobs that strengthen our communities, and contribute to the state’s economic recovery as we look beyond the pandemic.”
Before the sale took place, the state’s finance team met with the three primary credit rating agencies which include Fitch, Moody’s, and Standard & Poor’s.
All three agencies agreed with Moody’s report which says “a significant turnaround in the state’s economic and financial position” and revised the outlook for the State of Hawai’i to positive.
After the meeting with the credit agencies, Ige said the state held extensive marketing investor presentations via video conference.
Ige said the state’s strong credit and long-term strength appealed to a large range of buyers with over 120 institutions placing over $8 billion of orders for the bonds.
Bonds were also bought by residents and local institutions as well as international investors.
In addition, Ige said the advance refunding that refinances part of the state’s existing debt, will generate $76.8 million in present value savings.
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The lead underwriter of this sale are BofA Securities, and Citigroup & Morgan Stanley were the co-senior managers, while Jeffries and RBC were the co-managers of the bond sale.