Washington Treasurer Sells $1.5 Billion of Bonds, High Ratings Contribute to Successful Sale

What this means

OLYMPIA – The Office of the Washington State Treasurer today sold over $1.5 billion of new money bonds to fund a wide variety of capital and transportation projects. Prior to the sale, top credit rating agencies affirmed Washington’s bond ratings. The State Treasury recently completed its annual credit update meetings with the rating agencies to provide a thorough review of the state’s finances.

Official release

Source material from Washington Office of the State Treasurer. The wording below is the issuer’s statement.

OLYMPIA – The Office of the Washington State Treasurer today sold over $1.5 billion of new money bonds to fund a wide variety of capital and transportation projects. Prior to the sale, top credit rating agencies affirmed Washington’s bond ratings.

“Washington’s strong credit ratings continue to attract investors despite market volatility, ensuring our state receives the benefits of competitive borrowing costs for the capital and transportation projects funded through bond proceeds,” said Treasurer Pellicciotti. “Our ability to sell over $1.5 billion of bonds in a single day with highly competitive bids proves the value of prioritizing Washington’s financial health and stability. My office is committed to working with our partners in the legislature to secure our impressive credit ratings.”

The State Treasury recently completed its annual credit update meetings with the rating agencies to provide a thorough review of the state’s finances. Despite receiving a negative outlook this spring from Moody’s and Fitch, each of the three rating agencies affirmed Washington’s strong credit ratings ahead of the bond sale. Moody’s Ratings issued the highest possible rating of Aaa, while Fitch Ratings and S&P Global Ratings each maintained impressive AA+ ratings for the state.

In their rating reports, Moody’s cited Washington’s strong economic fundamentals and state GDP growth that has consistently outperformed the U.S., while Fitch noted that the state has a broadened and growing economy and relatively low long-term liabilities.

S&P Global Ratings reported that Washington has demonstrated an ability to weather budgetary challenges, and its forward-looking management practices paired with long-term forecasting, position it well to address future pressures and maintain credit stability.

Maintaining strong ratings allow the state to attract the lowest possible interest rates for its bonds, helping to minimize borrowing costs. Washington bonds provide funds for capital and transportation projects, such as construction of schools, government facilities, affordable housing, major infrastructure and roadway projects, and various other capital expenditures.

Sale Summary:

Various Purpose General Obligation Bonds, Series 2026E

The $784,325,000 Series 2026E bonds are being issued to provide funds to pay and reimburse state expenditures for various capital projects. Due to its large size, the bonds were divided into two tranches, to be sold as more manageable “Bid Groups”.

The state received 7 bids for the $382,775,000 sold as Bid Group 1 (maturities 2034-2044) with BofA Securities submitting the winning bid with a True Interest Cost (TIC) of 3.80%.

The state also received 7 bids for the $401,550,000 sold as Bid Group 2 (maturities 2045-2051) with BofA Securities submitting the winning bid with a TIC of 4.52%.

On a combined basis, the $784,325,000 Series 2026E bonds sold at an aggregate TIC of 4.22%

Motor Vehicle Fuel Tax and Vehicle Related Fees General Obligation Bonds, Series 2026F

The $538,710,000 Series 2026F bonds were issued to pay for transportation projects that are identified by the legislature in the biennial transportation budgets.

The state received 7 bids for the Series 2026F bonds (maturities 2026-2051) with BofA Securities submitting the winning bid with a TIC of 4.11%.

General Obligation Bonds, Series 2026T-3 (Taxable)

The $190,240,000 Series 2026T-3 bonds were issued to provide funds to pay and reimburse state expenditures for various capital purposes.

The state received 4 bids for the Series 2026T-3 bonds (maturities 2027-2034) with Wells Fargo Bank, National Association submitting the winning bid with a (TIC) of 4.36%.

Release text attributed to Washington Office of the State Treasurer. Consult the official publication for any subsequent corrections or updates.