The state of Minnesota issued more than $1 billion in bonds to make capital improvements.
The state issued the bonds in five series. The Series 2023A bonds, consisting of $161 million, mature between 2024 and 2043, yielding between 2.61% and 3.5%. The Series 2023B bonds, consisting of $264 million, mature between 2024 and 2043, yielding between 2.6% and 3.95%. The Series 2023C are due August 1, 2033, and yield 4.6%. The Series 2023D bonds, consisting of $329 million, mature between 2024 and 2033, yielding between 2.6% and 3.25%. The Series 2023E bonds, consisting of $255 million, mature between 2024 and 2033, yielding between 2.61% and 3.23%. 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 “the state’s steadily-growing and broad-based economy, highly educated workforce, expanding population, and a revenue structure well-designed to capture economic growth,” according to Fitch.
The issuance follows the enactment of the state’s biennial budget, which took effect July 1. The budget, Minnesota’s largest-ever, brings spending for the next two fiscal years to $72 billion.
Each series will finance a different set of projects. The Series 2023A bonds will support education, parks, pollution control, transportation, natural resources, and agriculture projects. The Series 2023B bonds will finance improvements to the state’s trunk highway system, a network of roads intended for freight or long-distance travel. The Series 2023C bonds will finance the development of the state’s agricultural resources. The Series 2023D and Series 2023E bonds will each refund previous issuances by the state.
The bonds are general obligations of the state of Minnesota, backed by its full faith and credit.
BofA Securities Inc, Citigroup Global Markets Inc, J.P. Morgan Securities LLC, and RBC Capital Markets LLC served as underwriters on the issuance.