FOR IMMEDIATE RELEASE
July 30, 2003
BUYERS SNAP UP HONOLULU BONDS IN RESPONSE TO UPGRADED RATING
Buyers quickly snapped up a quarter billion dollars worth of Honolulu’s general obligation bonds in about two hours yesterday. Ivan Lui-Kwan, director of the City’s Department of Budget and Fiscal Services, called from New York describing the bonds as “oversubscribed” because there were considerably more orders than available bonds. He indicated the brisk sales were due to bond buyers’ awareness of Honolulu’s strong bond ratings, including an upgrade to AA2 by one agency that reflected the City’s excellent credit worthiness.
Lui-Kwan, who was in New York to facilitate sales, said, “Not only did we get a good price, but the bonds were quickly absorbed.” He cited recent strong ratings by Fitch, Standard and Poor’s and Moody’s Investors Service. The Moody’s rating reflected the City’s healthy economy. “At a time when many cities’ credit worthiness is dropping, Honolulu’s already-strong rating has improved. As you speak with the rating agencies, it is clear that this is a result of consistently strong leadership and excellent financial management that Mayor Harris has practiced over the past decade.”
Funds from the sale of the bonds will be used for capital projects, with a major portion of the money going for road resurfacing projects.