GWA sells $134M in infrastructure bonds; high demand leads to oversubscription

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The Guam Waterworks Authority received an overwhelming response to its Water and Wastewater System Revenue Bonds Series 2020A offering today. GWA successfully sold $134 million in Revenue Bonds which attracted orders totaling $2.946 billion, 22 times more than the available amount in bonds offered. The high demand from investors allowed GWA to further reduce the interest rate by 25 basis points from 4.25% to 4.00%.

“The bond sale is a great day for GWA and Guam. This just demonstrates GWA’s continuing success story as a best in class utility,” said CCU Commissioner Joey Duenas.

GWA General Manager Miguel Bordallo added, “The success of this bond issuance during the prevailing market conditions in light of the COVID-19 pandemic is truly a testament to investor confidence in GWA’s ability to deliver on its plans for system improvements for our ratepayers. This confidence would not be possible without the hard work of the men and women of GWA, who provide demonstrated results of our improvement, day in and day out.”

Governor Lourdes Leon Guerrero and members of her fiscal team, including the Guam Economic Development Authority, joined the GWA in 14 investor meetings and calls held prior to the bond pricing.

During these conference call meetings—that were held on Guam—Governor Leon Guerrero addressed investors saying, “This GWA financing is further evidence of the strength of Guam. We as a community continue to make the necessary investments in our island’s infrastructure and GWA’s efforts—both in dealing with the impacts of the COVID‐19 pandemic and continued strengthening of GWA’s financial position over recent years—are a testament to our island’s resilience.”

The strong interest from investors was a signal that the Municipal Bond Market has recovered from recent selloffs over the last two months. The GWA bonds received investment-grade ratings of A- from Standard & Poor’s and a Baa2 from Moody’s Investors Service. The sale of the bonds is scheduled to close on June 4, 2020, when the funds are deposited into GWA accounts.

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