The County of Maui has successfully issued $60.87 million in General Obligation Bonds, Series 2022, at an average interest rate of 2.85%, Mayor Michael Victorino announced today.
Fitch Global Ratings, Moody’s Investor Service and S&P Global Ratings assigned ratings of AA+ (stable outlook), Aa1 (stable outlook), and AA+ (stable outlook), respectively, to Maui County’s General Obligation Bonds. Maui County continues to see strong demand from investors, locally and nationally, that helped support the transaction and will allow the County to achieve its financial objectives and fund countywide capital improvement projects.
Wells Fargo Securities served as the underwriter. PFM Financial Advisors LLC served as the County of Maui’s financial advisor, and Katten Muchin Rosenman LLP served as Bond Counsel on this bond transaction.
“Investors recognize the sound fiscal management team that got us through the pandemic with higher reserves than three years ago,” Mayor Victorino said. “The success of this borrowing exemplifies the County’s excellent credit ratings and vibrant economy, and provides the ability to fund critical capital improvement projects.”
Some of the larger capital improvement projects to be financed include land acquisitions, roadway, parks, facility rehabilitations, wastewater and solid waste improvements. Major projects include: Waiale land acquisition for cultural preservation; roadway improvements on South Kihei Road, Mill Street in Wailuku, Waikakoi and South Wailua Bridge Replacements and Pukalani Road Pavement Reconstruction; acquisition of the Wili Pa Loop Building; Waiale Road Extension and Land Acquisition; and; Lanai Fire Station Improvements.
Mayor Victorino and members of his administration worked tirelessly through the COVID-19 pandemic to effectively manage County finances, which resulted in the ability to finance capital improvement projects at the lowest borrowing cost. The County of Maui’s General Obligation Bonds benefit from strong demand by a diverse group of local and national investors. The investor community recognized the County of Maui’s strength and resiliency, as well as its fiscal prudence and management of the health and economic challenges brought on by COVID-19.
“I want to congratulate Finance Director Scott Teruya, Deputy Director May-Anne Alibin and the entire bond finance team for their focus, hard work and great accomplishment for the people of the County of Maui,” Mayor Victorino said.