Denver, Colorado, issued $267 million in bonds to finance capital improvements.
The city sold the bonds in two series. The Series 2024A bonds, consisting of $129.2 million, mature between 2024 and 2039, yielding between 2.65% and 3.18%. The Series 2024B bonds, consisting of $139.7 million, mature between 2024 and 2042, yielding between 2.67% and 3.5%. The securities received a rating of AAA from Fitch Ratings, Aaa from Moody’s Investors Service, and AAA from S&P Global Ratings.
The rating reflects “Denver’s strong revenue growth prospects, ample revenue-raising flexibility, moderate level of carrying costs and long-term liability burden and superior financial resiliency, well-demonstrated during economic downturns,” Fitch analysts wrote.
The Series 2024A bonds will fund the so-called Elevate Denver projects, which the city’s voters approved in 2017. These include transportation, parks, public safety, and library improvements, among other initiatives.
The Series 2024B bonds will finance the “Rise Denver” projects, a different group of improvements that voters in the city authorized in 2021. These include projects at major sites such as the Denver Botanic Gardens and Denver Zoo as well as at several museums.
The bonds are general obligations of the city and county of Denver, backed by its full faith and credit and payable by property taxes.
Jefferies & Company and Stifel, Nicolaus & Company, Inc served as underwriters on the issuance. Hilltop Securities Inc acted as financial advisor.