City’s Department of Environmental Services issued the following announcement on Dec. 16.
The City and County of Honolulu yesterday successfully sold $273.67 million worth of Wastewater System Revenue Bonds, Senior Series 2020A (Taxable) at an interest rate of approximately 2.16 percent. Nearly $3 billion in bond orders were received from 81 mainland and Hawai‘i institutions. The net proceeds from this bond sale will be used to refinance certain outstanding bonds which will save rate payers roughly $32.7 million in future interest payments.
Moody’s and Fitch rated the city’s senior wastewater revenue bonds “Aa2/AA,” with a stable outlook. The ratings reflect the wastewater enterprise’s strong service area, diverse economy, and ongoing rate support. Bank of America Securities, the lead underwriter in this transaction, noted that investors were drawn to the high quality credit quality of the wastewater bonds.
The City’s Department of Environmental Services uses bond proceeds to help pay for important work on wastewater pump stations, pipe infrastructure, treatment plants, and other facilities through the wastewater system, and includes areas such as Ala Moana, Chinatown, ‘Ewa Beach, Iwilei/Kapālama, Kailua, Kāne‘ohe, Nu‘uanu, Sand Island, Honouliuli, and Wai‘anae.
Original source can be found here.
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