![\"\"](\"\/wp-content\/uploads\/Daniel-K-Inouye-International-Airport-Tower-only.jpg\")
<\/figure><\/div>\n\n\n\nThe new bonds will fund approximately $230 million of\nessential projects that will sustain the momentum of the Airports Division\u2019s\ncapital improvement program as HDOT continues to invest in the State\u2019s\nairports. The bonds have an average interest\nrate of 3.44% with a final maturity in 2051. \nThe interest rate on the bonds sold today represents one of the lowest\ninterest rates ever achieved by the Airports Division, nearly surpassing the\nall-time low of 3.35% which was achieved in October 2020.<\/p>\n\n\n\n
HDOT also successfully refinanced $57 million of outstanding\nrevenue bonds for savings. The bonds\nthat were refinanced were originally issued in 2011 with an average interest\nrate of 4.80% and a final maturity in 2024. \nThe refinancing will lower the average cost to approximately 1.00%,\nreducing the debt service costs of these bonds.<\/p>\n\n\n\n
In preparation for the bond sale, the Airports Division\u2019s\nmanagement team led an extensive marketing campaign, highlighted by a live\nvirtual presentation by senior representatives of the State, HDOT, and the\nAirports Division. In attendance were\ninvestors representing some of the largest accounts in the U.S. that buy\nmunicipal bonds. The Division also\nreleased an online presentation for local and national investors and further\ntargeted Hawaiian investors with digital advertising on local websites.<\/p>\n\n\n\n
\u201cAir service is essential to Hawaii,\u201d said Gov. David\nIge. \u201cThe Hawaii Department of\nTransportation and the Airports Division continue to act prudently to deliver\nprojects to modernize and expand our facilities while also taking advantage of\nopportunities to reduce costs. These\nactions are instrumental as we continue to adapt to the COVID-19 pandemic, and\nthe success of today\u2019s transaction demonstrates the market\u2019s continued confidence\nin Hawaii and our Airports System as we build for the future.\u201d<\/p>\n\n\n\n
Prior to the bond sale, the Airports Division\u2019s credit\nquality was reviewed by Moody\u2019s Investors Service, S&P Global Ratings, and\nFitch Ratings, each of whom affirmed the Division\u2019s strong bond ratings of A1,\nA+, and A+, respectively. S&P raised\nthe Division\u2019s outlook to \u201cPositive\u201d from \u201cStable,\u201d citing the recovery of\ndomestic U.S. travelers to pre-pandemic levels, proactive measures taken by\nDivision management, and the State\u2019s long-term financial planning and\nresiliency as materially positive credit factors. Moody\u2019s and Fitch both assigned \u201cStable\u201d\noutlooks to the bonds, with Moody\u2019s recognizing the Airports Division\u2019s \u201cstrong\nfinancial flexibility to manage COVID-related pressures as passenger levels\ntrend toward full recovery.\u201d<\/p>\n\n\n\n
\u201cStrong credit ratings and a robust marketing effort proved\ninstrumental in obtaining one of the lowest interest rates ever achieved by the\nAirports Division, despite selling the bonds in a difficult market,\u201d said Ross\nHigashi, Deputy Director of the Airports Division. Volatility in the municipal bond market has\nincreased in recent weeks, as investor sentiment continues to evolve in\nresponse to the global COVID-19 pandemic and economic announcements at the federal\nlevel.<\/p>\n\n\n\n
Morgan Stanley served as the lead managing underwriter for\nthe bond sale, with BofA Securities as the co-senior manager. A Hawaii-based selling group was utilized to\nmarket the bonds to local retail investors.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Hawaii Department of Transportation (HDOT) is pleased to announce that the Airports Division has successfully sold new airports system revenue bonds to deliver critical funding for projects that will continue to modernize and expand air service facilities across the State. At the same time, the Airports Division took advantage of low interest rates in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-20711","post","type-post","status-publish","format-standard","hentry","category-hawaii"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/20711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/comments?post=20711"}],"version-history":[{"count":1,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/20711\/revisions"}],"predecessor-version":[{"id":20713,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/20711\/revisions\/20713"}],"wp:attachment":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/media?parent=20711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/categories?post=20711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/tags?post=20711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}