Vermont’s first bond sale in two years last week generated proceeds of $117 million for infrastructure enhancements, State Treasurer Beth Pearce announced Tuesday.
The Green Mountain State sold $34.7 million of Series A Vermont Citizen Bonds on Aug. 21 in a transaction led by senior manager Morgan Stanley. The state then held a $71.4 million 2017 Series B general obligation bond competitive sale offering two days later.
Proceeds from the $106.1 million in total bonds are slated to finance capital projects authorized by the Vermont General Assembly including improvements to state buildings, investments in information technology infrastructure as well as funds for housing and conservation initiatives. The bonds also yielded the state a premium of $10.9 million, according to Pearce.
“Investors continue to seek out Vermont bonds as a secure and reliable investment option,” Pearce said in a statement. “The continued strength of Vermont’s bond offerings enables the State to reduce the cost of borrowing for critically important projects across Vermont, like improving the health of our rivers, lakes and streams, buildings, and other capital projects.”
The state’s last borrowing in 2015 included $28.5 million of green bonds sold to fund drinking water and pollution control projects.
Vermont has the highest GO bond rating of all New England states at triple-A by Moody’s Investor Service and Fitch Ratings. The state is rated AA-plus by S&P Global Ratings.