The Maine Municipal Bond Bank issued $136 million in bonds to finance loans to governmental units in the state.
The bonds mature between 2025 and 2054, yielding between 2.95% and 4.35%. They received a rating of AA+ from S&P Global Ratings and Aa2 from Moody’s Investors Service, which assigned a positive outlook.
“The positive outlook reflects the positive developments occurring at the state level including improved reserves, elevated GDP growth, and positive demographic shifts such as a declining median age,” Moody’s analysts wrote.
The bank will use the bond proceeds to fund 17 loans to 16 governmental units. Those loans are expected to finance school construction, road and water infrastructure improvements, and the construction of several fire stations. The largest disbursement, some $65 million, will fund a new elementary and middle school in rural eastern Maine.
The bank was founded in 1973 to fund loans to Maine municipalities. It has issued $5.8 billion in bonds since then, about one-fifth of which remain outstanding. The bank last sold bonds in October 2023.
The bonds are general obligations of the bank, backed by its full faith and credit and secured by its revenue. The bank recorded $117.5 million in operating revenue last fiscal year, almost double the fiscal year 2022 figure.
BofA Securities, Inc served as lead underwriter on the issuance, purchasing the bonds for $152 million. The price reflected a premium of $16 million. Hilltop Securities Inc acted as municipal advisor.