Minnesota issued $1.6 billion in bonds to finance a series of capital improvements across the state.
Minnesota sold the bonds in five series. All are general obligations of the state, backed by its full faith and credit.
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,” Fitch analysts wrote.
Minnesota will use the bond proceeds for various purposes. It will spend $978 million on a broad set of capital improvements, $352.8 million specifically on upgrades to the state highway system, and $331.4 million on refunding previously issued securities.
“The money raised from the bond sale will help build and maintain assets throughout the state, improving the infrastructure that Minnesotans rely on every day,” Minnesota Management and Budget Commissioner Erin Campbell said in a press release.
Projects in the largest disbursement are typically related to education, parks, pollution control, transportation, and agriculture, according to the official statement accompanying the sale of the bonds. The refunding will lead to economic savings, the Minnesota Department of Management and Budget said.
BofA Securities, Inc, J.P. Morgan Securities LLC, Piper Sandler & Co, and RBC Capital Markets, LLC served as underwriters on the issuance. Public Resources Advisory Group, Inc acted as municipal advisor.