Bond sales totaling $1.94 billion will support critical infrastructure and capital improvement projects across the state.
After the Hawaiʻi Department of Budget and Finance completed bond sales, it improved the outlook and upgrade from national credit rating agencies.
“The successful bond sale and recent rating actions reflect the state’s continued focus on fiscal discipline, long-term planning, and infrastructure investment,” said Gov. Josh Green. “The money will support critical investments in schools, transportation systems, public facilities, and infrastructure.”
The financing comprises two transactions: a $1.5 billion sale of general obligation bonds and a $438 million sale of highway revenue bonds.
Proceeds from the general obligation bonds will finance public facilities, K-12 schools, University of Hawaiʻi and community college facilities, libraries, parks, highways, and other public infrastructure projects throughout the state.
Proceeds from the highway revenue bonds will support roadway improvements, modernization projects, and transportation infrastructure investments. A portion of the financing was also used to refinance outstanding highway revenue bonds, generating $11 million in present value debt service savings for taxpayers.
“The recent sales demonstrate the state’s continued commitment to balancing infrastructure investment with prudent fiscal management,” said Finance Director Seth S. Colby. “The strong market reception and positive rating actions reflect continued confidence in Hawaiʻi’s financial management and long-term resilience.”
Fitch Ratings, an American-British credit rating agency, raised the state’s general obligation bond credit outlook from stable to positive, while affirming Hawaiʻi’s AA rating.
According to Fitch Ratings, Hawaiʻi is well-positioned to address economic challenges due to its strong reserves and control over a broad array of budget-balancing options. Budget management is guided by frequent revenue forecasts and multiyear financial plans that the state uses effectively to make policy adjustments as required.
In addition, S&P Global Ratings raised its rating on Hawaiʻi highway revenue bonds to the highest level of AAA from AA+, citing consistently robust coverage, a diverse pledged revenue stream, and strong financial performance.
The state’s general obligation bonds were sold through a syndicate led by BofA Securities, Barclays Capital Inc., Raymond James & Associates Inc., Goldman Sachs & Co. LLC, and Jefferies LLC. The state saw strong demand from investors and received over $8.2 billion in orders from 122 institutional investors — representing more than five times the amount of bonds offered.
Highway revenue bonds were sold through a syndicate led by BofA Securities, RBC Capital Markets, and Wells Fargo Securities. The bond sale generated over $1.3 billion in total orders from 44 institutional investors, representing approximately three times the amount offered.
Additional information regarding the financing deals is available through the state’s Investor Relations website.
