Hawaii Finance Director Wes Machida says the bond sale will benefit the state.
Cory Lum/Civil Beat
Improved financial ratings, partially a result of efforts to reduce the billions of dollars Hawaii owes public pensioners in unfunded liabilities, is expected to help the state save more than $50 million by refinancing bonds that were issued at higher rates.
“We have undertaken several initiatives to improve the financial outlook of the state,” said Wesley Machida, the state’s finance director who is overseeing the sale of the general obligation bonds, in a statement.
Moody’s Investors Service upgraded its outlook rating for the state’s G.O. bonds from stable to positive, and S&P and Fitch have affirmed the rating as “AA,” according to a release Tuesday.
The G.O. bonds will pay semi-annual interest and will be sold in denominations of $5,000, or multiples thereof, the release says, noting that a Hawaii-based selling group will be utilized to market the bonds to local retail investors.