Wilmington, DE (February 17, 2022) – Finance Secretary Rick Geisenberger announced today that Delaware successfully sold $255 million in general obligation bonds in a competitive bond sale on Wednesday. Of the amount sold, $32.5 million represents a refinancing at lower interest rates, saving taxpayers more than $7.8 million in total debt service over the next 12 years.

“I again thank State employees and the General Assembly,” said Governor John Carney.  “Working together over the past 5 years, we have successfully managed the State’s finances through the turbulence of a major budget deficit, a pre-pandemic recovery, and the COVID emergency.   Now through the resilience of all Delawareans and our business community, we’re emerging from the pandemic stronger than ever.  This confidence is reflected in the public markets by this very successful bond sale.”

The State’s annual sale follows the recent announcement from Fitch, Moody’s and S&P Global Ratings that Delaware has maintained the highest possible AAA rating for its bonds. The rating is assigned based on criteria measuring the state’s economy, financial management, debt load and long-term costs. All three ratings reports highlight Delaware’s history of strong financial governance and specifically note regular fiscal updates, long-term forecasts, and reserve and debt management policies as contributing to the State’s ability to navigate national financial shocks.

Bond proceeds will fund numerous capital projects previously authorized by the General Assembly-including close to $200 million in school construction projects plus funding for housing and community development, National Guard training facilities, the Delaware Public Health Lab, library construction, court facilities, higher education campus improvements, and the rehabilitation of park and wildlife areas.

“Delaware has a well-earned reputation for strong fiscal governance and controls that has been built over many decades,” said State Treasurer Colleen Davis.  “The State’s liquidity has never been stronger and with the guidance of the Cash Management Policy Board, my office will continue its work to build the confidence that underlies the State’s Triple-A bond ratings.”

“Over the last two years, the State has sold $875 million in bonds at an extraordinarily low, average interest cost of 1.76%,” said Secretary Geisenberger.   “Re-affirmation of the State’s Triple-A bond ratings helps to ensure that State taxpayers will continue to save millions of dollars in financing costs and are a testament to the State’s long-term commitment to economic and financial stability.”

Finance Secretary Rick Geisenberger today announced that the State closed on the sale of $250 million in triple-A-rated general obligation bonds in last week’s bond sale. This was the second bond sale within four months.

“New federal tax policy eliminates the State’s ability to ‘advance’ refund its general obligation bonds for savings, so, in November, we took advantage of an opportunity to capture refunding savings of $4.7 million,” said Secretary Geisenberger. Last week’s sale of $250 million will fund capital projects including new schools in the Appoquinimink, Caesar Rodney and Laurel school districts, improvements to many other public schools as well as museums and the Port of Wilmington. These and many other capital projects are authorized by the General Assembly in the annual bond bill.

With triple-A ratings recently reaffirmed by Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s Rating Services, Delaware’s bonds were well received even in the recent volatile marketplace. The sale brought interest from a variety of investors, including bond funds, insurance companies, bank portfolios and separately managed accounts.

Wilmington, DE – Finance Secretary Thomas J. Cook announced today that Delaware successfully sold $236 million in triple-A-rated general obligation bonds in Tuesday’s annual bond sale, effectively netting a savings of over $8 million for Delaware taxpayers.

With triple-A ratings recently re-affirmed by Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s Rating Services, Delaware was able to obtain some of the best pricing relative to the triple-A index in recent history, even in a volatile market. “Credit quality matters and translates into reduced interest costs to taxpayers,” said Cook. “In this case, the triple-A rating saved Delaware taxpayers $5.8 million when compared to double-A rates.”

Of the $236 million of bonds sold, $36 million sold as Series C represents a refinancing at lower rates, saving taxpayers more than an additional $3 million.

“It is our responsibility to ensure we are using taxpayer dollars efficiently and maximizing the return on our investments,” said Governor Jack Markell. “Our triple-A rating, and the benefits that come with it, are the result of the fiscal discipline and prudent financial management that have become Delaware’s hallmark.”

Delaware’s combined cost of capital on this loan was 2.32%. “While not the lowest ever, it is lower relative to other high quality issuers that have been in the market recently,” said Cook. The state received seven bids; awarding Morgan Stanley &Co., LLC as the highest bidder on Series A, J.P. Morgan Securities LLC on Series B, and Bank of America Merrill Lynch on Series C.

The remaining $200 million, Series A and B, represents various capital projects – including over $100 million in school construction projects, improvements to the Veteran’s Home, National Guard readiness facilities, the Port of Wilmington, libraries around the state, and the rehabilitation of park and wildlife areas.

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Leslie A. Poland
Public Information Officer
Delaware Department of Finance
(302) 577-8522
leslie.poland@delaware.gov