PHOENIX — Washington State Treasurer James McIntire declared success after the state sold general obligation bonds this week, including its first ever designated green bonds.
Investors bought $51.1 million of the green bonds via negotiated sale Monday, McIntire announced in a statement late Wednesday. Bank of America Merrill Lynch was underwriter. The proceeds will be used for salmon habitat restoration through the removal of fish passage barriers, the installation of solar panel systems to generate more renewable energy, the improvement of forest health, and other environmentally beneficial projects.
Washington residents purchased over 40% of the bonds, which McIntire said demonstrates that investors are interested in supporting projects that benefit the environment. The state doesn’t have an income tax, so residents don’t get a tax advantage from buying in-state municipal bonds.
“These results demonstrate the value Washingtonians place in protecting our natural surroundings,” McIntire said. “By supporting these programs now, we are planning for a future in a cleaner, greener, more sustainable Washington State.”
The state also sold some $900 million of bonds via competitive sale on Wednesday, and McIntire was equally upbeat about what he considered to be strong demand for the securities. The bonds carry ratings of AA-plus from Fitch Ratings, Aa1 from Moody's Investors Service, and AA-plus from Standard & Poor's.
“We’re extremely happy with today’s bids,” McIntire said. “These results recognize the continued improvements to our economy as well as the state’s strong financial practices, commitment to sound debt management and solid liquidity.”
The $445.86 million Series 2016A-1 will be used to finance statewide projects such as K-12 school remodel and replacement projects, new facilities for universities and community colleges, habitat conservation, and farmland protection. JPMorgan was the lowest of five bidders for the series at a true interest cost of 3.6%.
Proceeds from the $189.34 million Series 2016B will fund transportation projects; Bank of America Merrill Lynch was the lowest of five bidders at a true interest cost of 3.49%.
The $60.71 million Series 2016T taxable sale will sustain construction and loan programs supporting low income housing developments as well as energy efficiency and renewable energy projects; JPMorgan came in with the lowest of 11 bids at a TIC of 1.53%.
The $193.78 million Series R-2016A refunding bonds will refinance existing state debt, saving taxpayers $25.8 million for the state’s general fund and freeing up $5.39 million for the current general fund state budget, McIntire’s office said. Bank of America Merrill Lynch won with the lowest of five bids at a TIC of 1.59%.
