OLYMPIA – Today, backed by newly affirmed credit ratings, the Office of the State Treasurer (OST) successfully sold $748.7 million in Various Purpose General Obligation (VPGO) Bonds and $420.4 million in Motor Vehicle Fuel Tax and Vehicle Related Fees General Obligation (MVFT/VRF GO) Bonds. It was the state’s first bond sale of 2025, just three months after facilitating the second largest one-day refinancing in state history.
“Thanks to disciplined financial management and a strong economy, Washington once again attracted competitive bids to invest in our bonds to fund capital and transportation projects around the state,” said Washington State Treasurer Mike Pellicciotti. “With a credit rating that matches the United States Federal Government, ensuring Washington continues to implement sound financial policy remains my top priority in order to keep debt costs low and save taxpayer dollars.”
Projects financed with proceeds of the Series 2025C Bonds include K-12 school renewal and replacement projects, facilities for state universities and community and technical colleges, and affordable housing units. The Series 2025D Bonds will help fund the construction of state and local highway improvement projects, including improvements to the Interstate 90 and State Route 18 interchange.
Leading up to this week’s sale, the nation’s top credit rating agencies again affirmed Washington’s ratings, which contributed to the favorable interest rates the state achieved. Moody’s Ratings issued the highest possible rating of Aaa, while S&P and Fitch separately issued AA+ ratings for the states bonds.
Sale Summary:
VPGO Bonds, Series 2025C
The $748,720,000 Series 2025C VPGO Bonds are being issued to provide funds to pay and reimburse state expenditures for various capital projects. Due to its large size, the bonds were divided into three tranches, to be sold as more digestible “Bid Groups”.
The State received eight bids for the $89,185,000 sold as Bid Group 1 (maturities 2026-2030). BofA Securities submitted the winning bid with a True Interest Cost (TIC) of 2.86%.
The State received seven bids for the $319,525,000 sold as Bid Group 2 (maturities 2031-2042). BofA Securities submitted the winning bid with a TIC of 3.67%.
The State received six bids for the $344,060,000 sold as Bid Group 3 (maturities 2043-2050). BofA Securities submitted the winning bid with a TIC of 4.45%
On a combined basis, the $748,720,000 Series 2025C VPGO Bonds sold at an aggregate TIC of 4.11%. The final maturity date for Series 2025C VPGO Bonds is February 1, 2050.
MVFT/VRF GO Bonds, Series 2025D
The $420,445,000 Series 2025D MVFT/VRF GO bonds were issued to pay for projects authorized by the legislature in the biennial transportation budgets.
The State received seven bids for the MVFT/VRF GO bonds (maturities 2026-2050) with BofA Securities submitting the winning bid with a TIC of 4.10%.