Connecticut's $650 million bond sale drew the highest amount of general obligation retail interest in nearly 18 months and finished with a final overall interest rate of 3.26%, state Treasurer Denise Nappier said.

The sale, according to Nappier, received more than $122 million in orders from individual investors during a Nov. 16 retail period that preceded the one-day institutional sale. The state received $1 billion overall in orders from institutional investors, oversubscribing some maturities.

"At the end of the day, despite market concerns about the state's overall financial health, the demand for Connecticut bonds by both retail and institutional investors remains strong," Nappier said in a statement.

All four major credit rating agencies reaffirmed the state bond ratings. Moody's Investors Service rates Connecticut GOs Aa3. Standard & Poor's, Fitch Ratings and Kroll Bond Ratings rate them AA.

Proceeds from the Series 2015 F bonds will fund $300 million in local school construction grants; $125.2 million for various state building projects including $63 million for ongoing renovations to 450 Columbus Boulevard in Hartford and $38 million for upgrades to the CORE-CT accounting system; $100 million for the Connecticut state university system including $35 million for technology upgrades and smart classrooms; $30 million for the town aid road program; $15 million toward the local capital improvement program; and $14.8 million for various grants programs.

Proceeds from the Series 2015 G green bond sale – Connecticut has issued three such bonds since their introduction to the U.S. municipal markets in 2013 -- will fund $65 million in grants to local municipalities for clean water infrastructure projects.

Barclays led the underwriting syndicate.

Day Pitney LLP and Finn Dixon & Herling LLP were disclosure counsel.

Robinson & Cole LLP and Soeder & Associates LLC were tax counsel. Financial advisors are Acacia Financial Group Inc. and A.C. Advisory.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.