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.”

DOVER – DNREC’s Division of Energy & Climate today announced the relaunch of Delaware’s Energy Efficiency Investment Fund – a grant program that supports energy efficiency upgrades in commercial, industrial, non-profit and local government buildings.

The program has been revamped to incentivize building systems upgrades exceed energy efficiency standards currently required by Delaware’s building energy code. Additionally, the program has been improved for quicker turnaround time between submission and review of applications. Lighting incentives also have been redesigned to better reflect market trends in light of low-cost LED technology.

“The Energy Efficiency Investment Fund has supported hundreds of projects that reduce Delawareans’ energy use and help lower operating costs,” said Energy Administrator Rob Underwood, Division of Energy & Climate. “Through these program improvements, we hope to encourage a deeper dive into energy efficiency with creative projects.”

“We still encourage basic changes like switching to energy-efficient lightbulbs, but there are also opportunities for larger, innovative projects like daylighting, or lower watts-per-square foot adjustments that can accomplish the same lighting goals with even less energy. The same is true for other building systems,” Underwood added.

For example, energy efficiency improvements can be implemented in HVAC systems, building automation, building envelope, plug load controls and even more complex projects like cogeneration (combined heat and power).

Energy Efficiency and Net Zero Capability
Energy efficient buildings help facility owners reduce operating costs while promoting a positive public image of environmental sustainability and corporate social responsibility – a move that also can be economically advantageous for businesses and organizations over their competitors.

Energy efficiency technology is also important in making buildings net zero capable, meaning the building has low energy needs that could potentially be met with onsite renewable energy, such as solar panels. In other words, the facility produces as much energy as it uses.

By supporting more extensive energy efficiency upgrades now, the Division of Energy & Climate aims to grow Delaware’s capacity for reaching this standard in the near future.

About the Energy Efficiency Investment Fund
The Energy Efficiency Investment Fund (EEIF) was initially created in 2011 to help Delaware businesses make equipment and facility upgrades that would reduce their energy use, resulting in lower operating costs and reduced environmental impacts. Due to lack of funding, the program was temporarily suspended in February 2016. The Division of Energy & Climate is now reopening the program using funding from the Regional Greenhouse Gas Initiative (RGGI) – a multi-state cap-and-trade program that reduces greenhouse gas pollution. With the support of the Delaware Sustainability Energy Utility (SEU) the program also has additional RGGI funding for non-profit recipients, and expanded grant eligibility to include funding for local governments.

For more information, contact Rachel Yocum by email at Rachel.Yocum@delaware.gov, or by phone at 302-735-3480, or click Energy Efficiency Investment Fund.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 292

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