OLYMPIA – Today, Treasurer Mike Pellicciotti authorized the refinancing of $834,735,000 of previously issued bonds, reducing borrowing costs by approximately $123 million. Since taking office in 2021, the Treasurer has led efforts to refinance nearly $9.4 billion of state debt. Today’s sale brings total savings to $878 million on a net present value basis.
“The talented team at my office has refinanced our previously issued bonds whenever possible to provide savings to the people of Washington,” said Pellicciotti. “Today is another great example of the savings we are able to generate as a result of smart treasury management and strong credit ratings.”
Despite economic softening and budget challenges, the three largest credit rating agencies recently affirmed Washington’s strong credit ratings, contributing to the favorable interest rates achieved in this week’s bond sale. Moody’s Ratings issued the highest possible rating of Aaa to Washington, while Fitch Ratings and S&P Global Ratings each maintained an impressive AA+ rating of the state.
The competitive sale of Various Purpose General Obligation Refunding Bonds and Motor Vehicle Fuel Tax and Vehicle Related Fees General Obligation Refunding Bonds each received multiple bids, an indicator that Washington bonds remain attractive to investors.
Sale Summary:
Various Purpose General Obligation (VPGO) Refunding Bonds, Series R-2026A
The $538,245,000 VPGO refunding bonds were issued to refinance $586,315,000 of previously issued bonds used to pay for various state capital projects.
The State received six bids for the VPGO refunding bonds (maturities 2026-2040) with underwriter Barclays Capital Inc. submitting the winning bid with a True Interest Cost (TIC) of 2.92%.
Motor Vehicle Fuel Tax and Vehicle Related Fees General Obligation (MVFT/VRF GO) Refunding Bonds, Series R-2026B
The $225,765,000 MVFT/VRF GO refunding bonds were issued to refinance $248,420,000 of bonds previously issued to fund transportation projects.
The State received seven bids for MVFT/VRF GO refunding bonds (maturities 2026-2040) with underwriter BofA Securities, Inc. submitting the winning bid with a True Interest Cost (TIC) of 3.03%.