The Guam Waterworks Authority has sold $134 million in revenue bonds, which attracted orders totaling $2.946 billion, 22 times more than the available amount in bonds offered, GWA said Friday.
GWA said Revenue Bonds Series 2020A received "an overwhelming response" and the high demand from investors allowed the water company to further reduce the interest rate by 25 basis points from 4.25 percent to 4 percent.
“The bond sale is a great day for GWA and Guam. This just demonstrates GWA's continuing success story as a best in class utility,” said CCU Commissioner Joey Duenas.
Proceeds from the bonds will be used for capital improvement projects that require immediate financing such as $40 million for court-ordered projects; $39 million for potential consent decree; and $12 million for water loss control, according to the Consolidated Commission on Utilities' resolution approved on Jan. 28.