Minnesota Division of Administration
Minnesota plans a $1.27 billion basic obligation bond sale within the aggressive market Sept. 23.
Bond proceeds will fund capital initiatives, state trunk freeway system upkeep and refundings of earlier sequence of bonds.
“Minnesota is seeking to elevate funds to assist ongoing infrastructure initiatives across the state,” Jennifer Hassemer, assistant commissioner for debt administration, advised The Bond Purchaser by electronic mail. “It has been a couple of yr since our final basic obligation bond sale and this retains the state on its annual issuance cadence.”
Public Assets Advisory Group serves as municipal advisor on the deal. Kutak Rock is bond counsel, in keeping with the
Hassemer mentioned the state will make “vital investments in roads and bridges, parks and trails, consuming water and wastewater infrastructure,” in addition to asset preservation.
The proceeds of the $550.4 million of Collection 2025A varied objective bonds and $25.6 million of Collection 2025C taxable varied objective bonds will fund state packages and capital initiatives, in keeping with the
Proceeds of the $294.9 million of Collection 2025B state trunk freeway bonds will fund the development, enchancment and upkeep of the state freeway system.
Proceeds of the $236.19 million of Collection 2025D varied objective refunding bonds will refund the Collection 2015A GO varied objective bonds and the Collection 2015D GO varied objective refunding bonds.
And the proceeds of the $158.69 million of Collection 2025E state trunk freeway refunding bonds will refund the Collection 2014E state trunk freeway refunding bonds; the Collection 2015B state trunk freeway bonds; and the Collection 2015E state trunk freeway refunding bonds.
“We need to present refund bonds from 2014 and 2015 which have reached their 10-year name date with a purpose to understand some financial financial savings for each the final fund and the trunk freeway fund,” Hassemer mentioned. “We imagine the financial savings potential is there within the present atmosphere to assist the deliberate construction.”
Fitch Scores, Moody’s Scores and S&P World Scores assign the deal a triple-A score and a secure outlook.
In its score report, Moody’s pointed to Minnesota’s excessive fund balances, modest long-term leverage and vital monetary flexibility. It additionally praised higher-than-expected income efficiency as serving to to counterbalance a funding hole of about 3% of income by means of 2027.
Fitch famous the state’s “traditionally sturdy management over income and spending that, together with a complicated method to order funding, leaves Minnesota well-positioned to handle by means of financial cycles.”
It additionally cited the state’s historical past of build up its reserves throughout restoration durations and Minnesota’s mechanisms to place a share of surplus income into its finances reserve fund yearly as a buffer in opposition to income volatility.
S&P mentioned its AAA score displays all the above and the state’s favorable financial profile. With conservatively managed debt and liabilities, well-funded pensions and restricted mounted price publicity, it mentioned, the state is in an excellent place to deal with medium-term dangers together with federal coverage adjustments.
“The enacted 2026-2027 biennial finances is, in our view, credit score impartial in that it does sufficient to slender the outyear finances hole to protect the state’s presently secure fiscal alignment, whereas leaving budgetary reserves at peer-comparable ranges,” S&P mentioned in its score report.
