By Staff Reports
(Honolulu) – The City and County of Honolulu (city) and the Department of Environmental Services (ENV) yesterday successfully sold $630 million of Wastewater System Revenue Bonds, including refinancing and restructuring of $325 million in outstanding debt. The city and ENV received nearly $6.3 billion in retail and institutional orders for these bonds, including millions of dollars in orders from Hawai‘i-based individuals and banks. The refinancing and restructuring will result in $216 million in savings over the next five years.
The average interest rate on the bonds was 4.34 percent.
The city plans to utilize the proceeds raised from the bonds to finance the costs of certain improvements to O‘ahu’s wastewater system.
Fitch Ratings, Inc. and S&P Global Ratings reaffirmed their ratings of ENV’s wastewater program at “AA” and “AA+,” respectively. Additionally, Fitch upgraded ENV’s financial Outlook to “Positive,” citing the department’s strong credit profile, including its conservative financial management practices, experienced management team, and track record of completing projects on schedule and within budget.
Bank of America Securities served as the lead underwriter for the offering with Morgan Stanley, Raymond James, and Stifel serving as co-managers.
As of July 2024, ENV has 122 wastewater projects underway in planning, design, and construction totaling $2.65 billion.