The revenue bonds were sold at a low interest rate of 4.26%.
Guam – The Guam Water Works Authority has sold $143 million dollar bond to help improve water and waste water infrastructure.
According to a release from the administration GWA successfully sold a series 2016 Guam Waterworks Authority water and waste-water system revenue bond at a low interest rate of 4.26%. Governor Calvo, his fiscal team and GEDA joined GWA and the CCU in a series of 20 investor meetings and calls before the bond was even priced. Acting GEDA administrator Jay Rojas says that their relationship with municipal bond investors came into play. Rojas says the market demand was strong with more than 75 investors participating and over $1.4 billion dollars in orders coming in within less than an hour.
This bond is tied to GWA revenues which means it will result in an increase in rates however GWA Spokeswoman Heidi Ballendorf says these rate increases were factored into GWA’s five year rate plan. The bond received three investment grade ratings an “A-” from S&P a triple “B” minus from Fitch and a “Baa2” from Moody’s. The bond proceeds will be deposited with the bond trustee the Bank of Guam once the bond closes on Wednesday February the 24th.