$117M State Bond Sale Funds Highway ImprovementsDecember 12, 2011, 6:40 PM HST · Updated December 12, 6:43 PM 0 Comments
By Sonia Isotov
Governor Neil Abercrombie announced today that the State of Hawaii successfully sold $117 million in Highway Revenue Bonds on November 30, 2011.
$112 million of the sale proceeds will be used to fund various highway projects. The remaining $5 million will provide over $1 million in present-value savings and reduce annual debt service payments.
“The low interest rate translates into tremendous savings for Hawaii. It is important for the state to continue its practice of sound fiscal management,” said Governor Neil Abercrombie.
“While we face challenges, the bond sale shows that we have our financial house in order and that we maintain the confidence of the rating agencies and the bond markets.”
Moody’s Investors Service, Standard & Poor’s Ratings Service and Fitch Ratings affirmed the state’s strong bond ratings of Aa2, AA+ and AA, respectively. Rating agencies cited the demonstrated willingness of the state legislature to implement measures to contribute to the pledged revenues as a key strength.
In addition, all three rating agencies cited the strong legal provisions and high debt service coverage for the high credit rating assigned to the bonds. The marketing plan for the bonds included investor presentations, both in-person in Hawaii and on the mainland, as well as internet-based presentations and conference calls. The extended marketing effort paid off when the bonds began trading.