Vermont Business Magazine Vermont State Treasurer Beth Pearce today announced that $106.1 million in bonds were successfully sold last week in two separate offerings, generating proceeds of $117 million, including a premium of $10.9 million. Vermont bonds have the highest bond ratings of any Northeastern state. On Monday, August 21, Vermont citizen and retail investors were given first priority to purchase $34.7 million of Series A Vermont Citizen Bonds, sold on a negotiated basis with Morgan Stanley as the senior manager and Bank of America Merrill Lynch, Citigroup, and JP Morgan as co-managers. $71.4 million in 2017 Series B General Obligation Bonds were sold by competitive sale on Wednesday, August 23.
“Investors continue to seek out Vermont bonds as a secure and reliable investment option,” said Treasurer Pearce. “The continued strength of Vermont’s bond offerings enables the State to reduce the cost of borrowing for critically important projects across Vermont, like improving the health of our rivers, lakes and streams, buildings, and other capital projects. These investments generate economic activity that creates high paying jobs for Vermonters.”
Funds raised by the bond sale will finance a number of capital projects authorized by the General Assembly, including improvements to state buildings and grounds, investments in IT infrastructure, and dollars for housing and conservation initiatives.
The 2017 bond sale includes a continued focus on Vermont’s lakes and rivers as a capital investment of vital importance to the state’s continued economic prosperity. In the State’s last bond issuance, which took place in October 2015, Green Bonds were sold to fund drinking water and pollution control projects. This bond issue included substantial dollars for lake and river remediation efforts.
Vermont bonds are rated triple-A by Moody’s Investor Service and Fitch Ratings, the highest rating available to government issuers. Vermont bonds also are rated AA+ by Standard & Poor’s Ratings Service, the second highest rating. Vermont has the highest general obligation bond ratings of any New England state.
Source: Treasurer. 8.29.2017