Sale of Series 2024B Bonds Raises $268 Million to fund capital projects

NEW YORK -- HRSD conducted a successful sale of the Wastewater Revenue Bonds Series, 2024B (the 2024B Bonds) on July 23, 2024, raising $268 million to fund capital projects, including HRSD’s Sustainable Water Initiative for Tomorrow (SWIFT) projects. The bonds were sold at an overall interest rate of 4.15% via a negotiated sale process with Bank of America Securities, Inc. as the senior managing underwriter and will be repaid through 2054.

There was exceptional demand for HRSD bonds, with orders from 27 separate investors. The types of investors that placed orders were diverse, ranging from individual investors placing orders for $10,000 to an investment management firm placing an order for just over $166 million of HRSD bonds. The strong demand allowed HRSD to improve (lower) the interest rate on the 2024B Bonds following the initial order period.

Prior to the bond sale, Moody’s Investors’ Service and S&P Global Ratings affirmed HRSD’s bond ratings of Aa1 and AA+, respectively. As part of the credit review process, the rating agencies carefully evaluated HRSD’s system size and capacity, service area, finances, debt, and management, among other factors.

###

HRSD’s promise is to treat wastewater and recover natural resources to protect public health and the environment. A political subdivision of the Commonwealth of Virginia, HRSD was created by public referendum in 1940 and currently serves 20 cities and counties in southeast Virginia, an area with a population of 1.9 million.