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Washington Issues $472 Million in Bonds

By Munichain News Desk

Washington sold $471.5 million in bonds to refund previously issued securities.

The state issued the bonds in two series. The Series R-2024A bonds, consisting of $289.7 million, mature between 2024 and 2039, yielding between 3.28% and 3.99%. The Series R-2024B bonds, consisting of $181.8 million, mature between 2025 and 2039, yielding between 3.28% and 3.97%. 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,” Fitch analysts wrote.

Washington’s revenue has increased in recent years amid tax hikes and continuous economic growth. State tax collections more than doubled from fiscal year 2012 to 2022; Washington collected $33.4 billion in taxes last year, compared to $16.1 billion in taxes a decade ago, according to state statistics.

The issuance proceeds will refund bonds the state sold in 2014. 

The bonds are general obligations of the state, backed by its full faith, credit, and taxing power. The Series R-2024B bonds are further supported by gas taxes and vehicle fees.

BofA Securities Inc served as underwriter on the issuance, purchasing the bonds for $515 million. The price reflected a premium of $43.5 million.

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