GWA launches $267.1M bond sale for capital improvements;
Bonds are an alternative way for government agencies to raise funding. The Guam Waterworks Authority is the latest Guam agency to launch a bond sale.
GWA is offering $267.1 million of bonds to pay for capital improvements to the island’s water and wastewater systems, as of July 8.
The Water and Wastewater System Revenue bonds Series 2025 A bonds will also be used to establish a bond reserve fund and pay issuance costs, according to offering documents posted. The bonds are exempt from taxes in all U.S. states and territories.
Moody's assigned the bonds a long-term debt rating of Baa2, and S&P Global Ratings gave the securities an A- rating, according to Dow Jones News Wires.
Guam Waterworks Authority in Mangilao. Photo by Skyler Obispo
The credit rating agency earlier dropped the A.B. Won Pat International Airport, Guam’s credit rating from stable to negative, citing the island’s sluggish tourism recovery.
A June 30 report by the U.S. Government Accountability Office showed that as of Sept. 30, 2023, Guam’s total public debt outstanding was $2.5 billion. The island’s 2023 GDP data was not available, but fiscal 2022 total public debt was $2.6 billion, about 38% of GDP, the GAO said, also noting the island’s tourism industry has not returned to pre-COVID-19 levels, but that U.S. military investment is bolstering the economy. mbj
