Hawaii sold $866.9 million of general obligation bonds in mid-November, achieving an all-in interest cost of 2.6%, officials said.
The $470 million of new-money proceeds will be used for various improvement projects, including public buildings and facilities, elementary and secondary schools, community college and university facilities, libraries and parks.
Goldman, Sachs & Co. and Bank of America Merrill Lynch were co-lead managers for the syndicate that priced the bonds in three series.
They included a $398 million refunding and $26 million in taxable general obligation bonds.
The underwriters held two days of retail orders before presenting the bonds to institutional investors on Nov. 15.
The refunding generated more than $54.8 million of present-value debt service savings, according to officials.
“We are very pleased with the results of this transaction,” finance director Kalbert Young said in a news release.
“The strong results reflect a great deal of focus by the administration during the past two years to enhance our connectivity with the investor community, to improve our credit outlook through prudent fiscal actions, and by raising awareness about the strength, diversity and growth of the economy in Hawaii,” he said.
The bonds are rated Aa2 by Moody’s Investors Service and AA by Standard & Poor’s and Fitch Ratings.
“My administration remains focused on investing in the future of Hawaii and improving our financial footing,” Hawaii Gov. Neil Abercrombie said in a statement.
“Just two years ago, our state faced a tremendous budget deficit and a daunting economic outlook,” the statement said. “Today, the strength of our credit ratings and the strong demand from both local and national investors reaffirm our strategy to make prudent fiscal decisions and invest in infrastructure and state facilities that stimulate the economy and create opportunities for employment.”