State expecting to save $55.4M after bond sale

Advertiser Staff

The state is realizing about $55.4 million in savings to its debt service as a result of a successful refinancing of higher-rate bonds.

With the state moving quickly to take advantage of a low-interest rate environment, the $741.3 million refunding was met by a variety of interests from Hawai'i residents, insurance companies to bond funds and other institutional investors, the governor's office said.

Additionally, the state sold $225 million of general obligation bonds to pay for a number of capital improvements including facilities at Hawai'i's public schools, the University of Hawai'i and libraries.

The bonds had an overall interest rate of 3.83 percent.

The bond sale was aided by the state's recent ratings upgrade from Moody's Investors Service to "Aa2," the highest rating ever assigned to the state, according to Gov. Linda Lingle.