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.”
