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Maui County borrows at record low 2.18% interest rate

By Star-Advertiser staff

LAST UPDATED: 12:56 p.m. HST, Nov 13, 2012

Maui County was able to significantly reduce its financing costs with the recent sale of $70.2 million in general obligation bonds at a record low interest rate.

The bonds will carry an interest rate of 2.18 percent, the lowest ever paid by Maui County. Citigroup Global Markets outbid 12 other investment banks Oct. 30 for the bonds, which was  were rated “AA+” by Fitch Ratings.

An identically rated bond issue by the City and County of Honolulu last month was priced with an interest rate of 3.20 percent. The “AA+” rating is one notch below Fitch’s top rating of “AAA.”“

The Maui bonds will be used to fund $46 million in county projects, while the balance will be used to refinance existing debt, according to the Maui mayor’s office.

“These firms looked at Maui County’s financial stability and economic strength and the liked what they saw,” Maui Mayor Alan Arakawa said. “They know that investing in Maui is a good investment and this competitive bid for our bonds prove that,” he said.

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