Washington issued $1.36 billion in bonds to finance capital improvements and refund previously issued securities.
The state sold the bonds in three series of tax-exempt bonds and one series of taxable bonds.
The tax-exempt securities include: Series 2025A bonds, consisting of $822 million, maturing between 2027 and 2049, and yielding between 2.92% and 3.86%; the Series 2025B bonds, consisting of $206.7 million, maturing between 2025 and 2049, and yielding between 2,96% and 3.91%; and the Series R-2025A bonds, consisting of $286.1 million, maturing between 2025 and 2039, and yielding between 2.96% and 3.28%.
The taxable Series 2025T bonds mature between 2025 and 2027, yielding between 4.54% and 5.05%.
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 Washington’s “broad and growing economy, with solid long-term revenue growth prospects, and demonstrated commitment to fiscal balance and long-term liabilities that place a low burden on resources,” Fitch analysts wrote.
Washington will use the proceeds from the Series A and Series B bonds to fund capital expenditures. The Series A and Series T bonds will support projects such as infrastructure upgrades and affordable housing initiatives, and the Series B bonds will finance highway improvements. The Series R issuance will refund bonds that Washington sold in 2014.
The bonds are general obligations of the state, backed by its full faith and credit.
BofA Securities, Inc, J.P. Morgan Securities LLC, and FHN Capital Markets served as underwriters on the issuance. Montague DeRose and Associates, LLC and Piper Sandler & Co acted as municipal advisors.