Connecticut's recent $557 million sale of general obligation bonds, which included its first sale of so-called green bonds, will save taxpayers $35.4 million through refinancing, state Treasurer Denise Nappier said Nov. 25.
Nine green investors placed orders totaling $27.7 million, she said.
"We developed the new green bond product to meet the needs of the growing group of investors who have mandates and goals to invest in responsible green infrastructure projects. This initiative clearly was a success," said Nappier.
The overall interest cost on the refunding bonds is 1.9%. according to Nappier. She said the state structured the transaction to provide level savings over each of the next 11 years of about $3.2 million per year.
The bond sale provides $300 million of new funding for infrastructure projects, including $60 million of clean water projects funded through Connecticut's issuance of green bonds.
Green bonds were offered in four longer maturities -- 2028 through 2031.
The other projects funded with these bonds include $140 million for local school construction projects, $33 million for improvements at state universities, $16 million for the Jackson Laboratory project, $10 million for the local capital improvement fund and $41 million for general state projects.
The bonds were offered to individual retail investors on a priority basis on Nov. 19, and to institutional investors the following day. A total of $55 million in retail orders was entered during the one-day retail order period. Bond closing is set for Dec. 10.
Senior manager JPMorgan led an underwriting syndicate of bond underwriters. Day Pitney LLP and Finn Dixon & Herling LLP were disclosure counsel for the GO sales, with Robinson & Cole LLP and Soeder & Associates LLC serving as tax counsel. Acacia Financial Group, Inc. and A.C. Advisory were financial advisors.
The four credit rating agencies reaffirmed the state's bond ratings. Moody's Investors Service rates Connecticut GOs Aa3, while Standard & Poor's, Fitch Ratings, and Kroll Bond Rating Agency assigned AA ratings.