Maui County, Hawaii, officials say their decision to price $70.2 million of bonds competitively worked out well with the county attaining all-in interest costs of 2.18% on the bonds.
Citi outbid 12 competitors for the bonds, which priced earlier in November.
“These firms looked at Maui County’s financial stability and economic strength and they liked what they saw,” Mayor Alan Arakawa said in a news release. “They know that investing in Maui is a good investment and this competitive bid for our bonds proves that.”
The bonds will be used to fund approximately $46 million in new county projects while $30 million will be used to help pay off the county’s prior bonds and state loans.
Last month, Moody’s Investors Service, Standard & Poor’s and Fitch Ratings rated Maui County’s bonds double-A-plus. The rating agencies cited a strong tourism industry, booming construction projects, and “strong financial operations” and “prudent fiscal management” as factors in their high ratings of Maui County.
“High bond ratings are important because they are the county’s equivalent of someone’s personal credit score or credit rating,” Arakawa said. “The fact that Maui County received such a great score means millions of dollars saved for taxpayers.”