TREASURER RUSSELL ANNOUNCES SUCCESSFUL $1.4 BILLION GENERAL OBLIGATION BOND SALE FOLLOWING INVESTOR ROAD SHOW WITH GOVERNOR LAMONT

04/24/2025

TREASURER RUSSELL ANNOUNCES SUCCESSFUL $1.4 BILLION GENERAL OBLIGATION BOND SALE FOLLOWING INVESTOR ROAD SHOW WITH GOVERNOR LAMONT

HARTFORD, Connecticut - Today, Connecticut State Treasurer Erick Russell announced the results of a successful $1.4 billion State of Connecticut General Obligation (GO) Bond offering. The bonds will fund a variety of capital improvements and grant programs across Connecticut and will refinance existing debt for savings.

"The GO Bond program provides for strategic infrastructure investment in Connecticut," Treasurer Russell said. "From school construction to affordable housing to capital projects across the state, these funds will help strengthen communities and create jobs. With the instability we are seeing in the economy on a national level, this is a solid investment we can all feel good about."

The $800 million new money bond offering consisted of $500 million of 2025 Series A Tax-Exempt Bonds and $300 million 2025 Series A Taxable Bonds. In addition, $598.6 million of 2025 Series B Tax-Exempt bonds were sold to refund three series of outstanding callable GO bonds for total savings of approximately $39.5 million over the next 10 years.

Last week, Treasurer Russell was joined by Governor Ned Lamont and Office of Policy and Management Secretary Jeffrey Beckham in an "Investor Road Show," with presentations to key institutional and retail investors in Boston, New York, and Hartford. They highlighted the State's continued fiscal discipline, improved credit ratings, and strong economic fundamentals.

"We're proud to show investors the tangible progress Connecticut has made," continued Treasurer Russell. "From six consecutive years of budget surpluses to a fully funded Rainy Day Fund and sustained pension reform, Connecticut has become a national model of responsible governance and long-term planning."

"Bond sales have enabled our state to make vital investments in our future, including housing, schools, and other necessary infrastructure improvements," said Governor Lamont. "While honoring our promises to bondholders and building on the success of our budgetary guardrails, we have been able to turn our fiscal house around. We look forward to staying the course and continuing that progress in our next budget.."

Key highlights of their Road Show presentation included:

• A record-high $4.1 billion Budget Reserve Fund, now at the statutory maximum of 18% of expenditures

• More than $8.6 billion in supplemental pension contributions made since FY2020

• Six consecutive years of General Fund operating surpluses with a projected seventh in FY2025

• Improved pension funded ratios and a conservative debt portfolio with 78% of GO principal set to mature within 10 years

• Upgrades from all four major credit rating agencies since 2019

• A resilient economy, bolstered by one of the highest per capita incomes in the nation, a highly educated workforce, and major corporate presence.

Retail Order Period

As is the State's custom, Treasurer Russell gave individual ("retail") investors priority on the bonds during a dedicated one-day, retail-only order period on Tuesday, April 22, which helped generate retail orders totaling $755 million. This includes $292 million from Connecticut investors.

Orders and Interest Cost

Despite volatility in the municipal bond market, the State attracted more than $9 billion in total orders from both retail and institutional investors, exceeding by nearly seven times the amount of bonds being offered.

This significant investor response produced a 3.59% borrowing cost on the 20-year 2025 Series A and B Bonds and a 4.93% borrowing cost on the ten-year Taxable 2025 Series A Bonds. Lower borrowing costs save taxpayers money in the long-term.

The 2025 Series A and 2025 Taxable Series A bonds will fund:

• $ 425.0 million for School Construction

• $ 123.3 million for Build for Connecticut Housing Project

• $ 72.0 million for Affordable Housing

• $ 44.9 million for Grants for improvements to ports, harbors, and marinas

• $ 31.7 million for Community Conservation Development

• $ 28.0 million for Improvements at the XL Center in Hartford

• $ 19.9 million for Improvements to State- owned facilities

• $ 15.5 million for Economic and Community Development

• $ 14.0 million for Technology enhancements for various state agencies

• $ 13.0 million for University of Connecticut Health Center

• $ 8.5 million for Strategic Defense Investment Program

• $ 2.3 million for Grants-in- Aid to Municipalities for qualified infrastructure projects

• $ 1.5 million for Preservation of Agricultural Land

Summary of GO Credit Ratings

Prior to the bond sale, all four credit rating agencies affirmed the State's GO credit ratings.

• Moody's Investors Service affirmed its "Aa3" rating, with a Positive Outlook;

• S&P Global Ratings affirmed its "AA-" rating, with a Stable Outlook;

• Fitch Ratings affirmed its "AA-" rating, with a Positive Outlook;

• and Kroll Bond Ratings affirmed its "AA+" credit rating with a Stable Outlook.

Barclays Capital Markets and Ramirez & Co., Inc. co-led the bond underwriting syndicate that sold the bonds, which are scheduled to close on May 7, 2025.

More information on the State's bonding program is available at www.buyctbonds.comings

About the Office of the Treasurer

The Office of the Treasurer is charged with safeguarding Connecticut's financial resources through prudent cash and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state's fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut's social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.

Contact: Brett Cody
brett.cody@ct.gov | (959) 529-2468