The Hawaii Department of Transportation (HDOT) recently sold airports system revenue bonds that will fund approximately $230 million in Airports Division capital improvement projects.
The bonds mature in 2051 and have an average interest rate of 3.44 percent, one of the lowest interest rates obtained by the Airports Division.
“Strong credit ratings and a robust marketing effort proved instrumental in obtaining one of the lowest interest rates ever achieved by the Airports Division, despite selling the bonds in a difficult market,” Ross Higashi, Airports Division deputy director, said.
Three bond credit rating businesses reviewed Airports Division’s credit quality before the bond sale and rated the division’s bond ratings at A1, A+, and A+.
The Airports Division’s management team led an extensive marketing campaign in advance of the sale. This included digital advertising, an online presentation for local and national investors, and a live virtual presentation by HDOT, the Airports Division, and state senior representatives.
In addition, HDOT also recently refinanced $57 million outstanding revenue bonds for savings. The bonds were originally issued in 2011 with an average interest rate of 4.8 percent and maturing in 2024. Refinancing lowers the debt service costs of these bonds by reducing the average cost to approximately 1 percent.