The City and County of Honolulu sold general obligation bonds at the lowest borrowing cost in recent history, saving $15.8 million in debt service through refunding.

The city sold $742 million of General Obligation bonds to the public to finance projects, purchase equipment, make improvements to H-Power, the island’s waste-to-energy facility and portions of rail construction.

The average interest on the bonds sold was only 2.07% which was historically low for 25-year financing.

“This bond sale is a tremendous success for the people of our City as it will save millions of dollars for years to come,” said Mayor Rick Blangiardi.

The city’s bond rating from Fitch is a “AA+”, citing Honolulu’s “solid” revenue framework in large part due to consistent property taxes.

Moody’s Investor Services also gave the city a good bond rating at “Aa1.” It cited “prudent fiscal management”, a growing tourism industry, low unemployment levels and reducing pension liabilities as the reasons for maintaining the good rating.

BofA Securities is the lead underwriter and Piper Sandler & Co. and Stifel are the co-managers.