Governor  Dannel P. Malloy
 

Debt Management

The Year in Review

During Fiscal Year 2017, the Debt Management Division’s noteworthy accomplishments included:

  • New Money Bonds - A total of $3.4 billion of new money bonds were issued to continue funding of the State's capital programs for local school construction grants, economic development initiatives, transportation infrastructure improvements, clean water fund grants and loans, improvements at the University of Connecticut, and other capital projects.  These projects, which help bolster the local economy, improve the lives of Connecticut citizens and strengthen the State's fiscal standing, continue to be funded at some of the lowest interest rates in State history.
  • Refunding Bonds – As interest rates continue to remain low, the Division refunded outstanding debt through the issuance of $659.3 million of General Obligation refunding bonds, $68.3 million of Special Tax Obligation refunding bonds, $34.0 million of UCONN 2000 refunding bonds, and $105.1 million of State Revolving Fund (Clean Water Fund and Drinking Water Fund) refunding bonds, for an aggregate savings of $78.7 million.  A total of $1.2 billion in debt service savings will be achieved over the life of te bonds from debt refunding and defeasances completed since January 1, 1999.
  • Green Bonds - The State of Connecticut continued to be a national leader in the issuance of "Green Bonds" designed to meet the needs of the growing number of socially and environmentally aware investors interested in investing specifically in green infrastructure.  The Treasury issued $250 million of Clean Water Fund Green Bonds that included a second opinion from a global environmental assessment firm, the first State revolving fund bonds in the nation to be issued with such an opinion.  Another $65 million of Green Bonds was issued through the General Obligation bond program for the Clean Water Fund this past fiscal year, bringing the total of Green Bonds issued by the State to $690 million since 2014.
  • Proposed New Tax-Secured Bonding Program - Treasurer Nappier proposed an alternative Connecticut bonding program backed by the withholding portion of the State's personal income tax.  The bonds are expected to achieve higher credit ratings and lower borrowing costs for the State.  The new bonding program would be accompanied by a plan to rebuild the State's Budget Reserve Fund, which is expected to also improve the credit ratings on the State's General Obligation bonds over time.  As of June 30, the legislation is pending at the General Assembly.
  • New Investor Relations Website - A new, expanded investor relations website, www.BuyCTBonds.com, was developed and launched.  It will provide investors with a convenient one-stop location to obtain information of interest about investing in Connecticut bonds.
  • Transportation Bonding Program - The Division Issued $800 million of Special Tax Obligation bonds to fund new and ongoing transportation infrastructure improvements. It continued to consult with the Department of Transportation and the Office of Policy and Management on bonding matters including drafting legislation to allow the State to access certain federal loans for transportation improvements under the Transportation Infrastructure Finance and Innovation Act, establishment of a transportation lockbox, and negotiation of financial terms related to a major rail car lease.
  • Clean Water Fund – In addition to the $250 million Clean Water Fund bond issue, the Division worked closely with the Department of Energy and Environmental Protection and the Department of Public Health to successfully commit low-cost funding for program participants throughout the State and interfaced with federal governing officials.
  • University of Connecticut – The Division worked in conjunction with the University of Connecticut to issue both new money and refunding UCONN 2000 bonds totaling $345.2 million as well as various leasing, credit rating agency and legislative matters.
  • Quasi-Public Agencies – The Division worked closely with State quasi-public agencies on various initiatives including with the Connecticut Green Bank on financing the first installation of an Archimedean screw hydropower project in the nation and energy efficiency improvements in State buildings; with the new Connecticut Port Authority on establishing its operations; with the Connecticut Airport Authority on renewing and extending bank agreements and financing options for an intermodal transportation center; and with the State's student loan agencies on utilizing available funding to assist Connecticut students.
  • Systems Improvements - The Division completed process improvements this past year, including the establishment of a continuous bond underwriting Request for Proposals to allow firms to seek qualification at any time to participate on State bond sales.