Highway Bond Sale Secures $164M for HawaiʻiAugust 4, 2014, 10:26 PM HST · Updated August 5, 9:23 AM 0 Comments
By Maui Now Staff
State officials announced the successful sale of nearly $164 million in Highway Revenue Bonds, with an estimated $120 million to fund various highway projects, and more than $65 million allocated to refinance existing bonds for interest savings.
State transportation officials say the refinancing will save taxpayers more than $5.1 million in net present-value savings and reduce annual debt service payments.
The state secured a less than 3% interest race on the financing, the lowest it has ever received since starting the Highway Revenue Bond Program in 1993.
“This financing is a tremendous success for our state, enabling continued investment in our infrastructure at a very affordable borrowing cost,” said Governor Neil Abercrombie in a press release announcement.
“The low interest rates achieved demonstrate bond investors’ confidence in the economic strength of Hawaiʻi and our significantly improved fiscal management. Results of the financing demonstrate years of discipline and responsible choices to ensure this positive result,” he said.
State officials say demand for the bonds was approximately four times higher than the total amount available for sale, and the state took advantage of this demand to lower interest rates further.
“We could not be happier with the successful bond sale and the high credit rating,” said Ford Fuchigami, interim director of the state Department of Transportation. “The Highways Division has consistently maintained fiscal conservatism in its debt management and the high credit ratings and the demand for the offered bonds demonstrate the wisdom of the division’s past and current fiscal and debt management policies.”