The state of Washington sold $1.1 billion in bonds for various capital purposes, including transportation projects.
The state sold the bonds in three series. The tax-exempt Series 2024A bonds, consisting of $682.6 million, mature between 2027 and 2048, yielding between 2.54% and 3.75%. The tax-exempt Series 2024B bonds, consisting of $376.6 million, also mature between 2024 and 2048, yielding between 2.54% and 3.76%. The taxable Series 2024T bonds, consisting of $55.1 million, mature between 2024 and 2027, yielding between 4.45% and 5.15%. The securities received a rating of AA+ from Fitch Ratings, Aaa from Moody’s Investors Service, and AA+ from S&P Global Ratings.
The rating reflects “the state’s broad and growing economy, with solid long-term revenue growth prospects, as well as the state’s demonstrated commitment to fiscal balance and long-term liabilities that place a low burden on resources,” according to Fitch.
Washington’s post-pandemic economic rebound has exceeded national averages. The state’s labor market contracted less than the U.S. average during the pandemic, and has grown faster than the average in the years since.
The state will use each series of bonds for a different set of projects. The Series 2023A bonds will finance improvements to the state’s public schools, flood protection projects, and habitat conservation, among other purposes. The Series 2024B bonds will pay for improvements to state and local highways. The Series 2024T bonds will provide funds for affordable housing units, clean energy projects, and basic infrastructure projects.
The bonds are general obligations of the state, backed by its full faith, credit, and taxing power.
BofA Securities Inc, Citigroup Global Markets Inc, and KeyBanc Capital Markets Inc served as underwriters on the issuance.