TREASURER RUSSELL ANNOUNCES SUCCESSFUL $1.8 BILLION GENERAL OBLIGATION BOND SALE FOLLOWING TWO CREDIT RATING UPGRADES

09/30/2025

TREASURER RUSSELL ANNOUNCES SUCCESSFUL $1.8 BILLION GENERAL OBLIGATION BOND SALE FOLLOWING TWO CREDIT RATING UPGRADES

HARTFORD, Connecticut - Today, Connecticut State Treasurer Erick Russell announced the results of a successful $1.815 billion State of Connecticut General Obligation (GO) Bond offering. The bonds will fund a variety of capital improvements and grant programs across Connecticut and will refinance existing debt for savings.

"I'm pleased to report such a positive result from this bond sale. The GO Bond program plays a critical role in our state's strategic infrastructure development," Treasurer Russell said. "Across Connecticut, these funds will help strengthen communities and create jobs."

The $1.1 billion new money bond offering consisted of $800 million of 2025 Series B Tax-Exempt Bonds and $300 million 2025 Series B Taxable Bonds. In addition, $715 million of 2025 Series D Tax-Exempt bonds were sold to refund four series of outstanding GO bonds for total savings of approximately $42 million over the next 10 years.

Rating Upgrades

Prior to the bond sale, Connecticut received credit rating upgrades from both Moody's Investors Service and Fitch Ratings. Moody's upgraded the state's rating from Aa3 to Aa2 with a stable outlook, and Fitch from AA- to AA, also with a stable outlook.

S&P Global Ratings affirmed its "AA-" rating, with a stable outlook, and Kroll Bond Ratings affirmed its "AA+" credit rating with a stable outlook.

The rating upgrades were a critical factor in Connecticut achieving a low all-in interest cost of 3.76% on the 20-year tax-exempt bonds, and 4.29% on the 10-year taxable bonds.

Retail Order Period

As is the state's custom, Treasurer Russell gave individual ("retail") investors priority on the bonds during a dedicated one-day, retail-only order period on Wednesday, September 24th, which helped generate retail orders totaling $1.2 billion, including $277 million from Connecticut investors.

High Demand Among Investors

Overall, the taxable bonds were 6 times oversubscribed, bringing in $1.8 billion in orders on a $300 million deal. The tax-exempt bonds secured $3.2 billion in orders from 60 institutions, an oversubscription of 2.1 times.

The 2025 Series C and 2025 Taxable Series B bonds will fund:

• $421.0 million for Educational Facilities Alterations, Improvements and Construction
• $223.6 million for Infrastructure and Public Safety
• $198.3 million for Affordable Housing
• $100.5 million for Technology enhancements for various state agencies
• $48.0 million for Improvements to the former XL Center in Hartford
• $46.4 million for Community Conservation Development
• $37.5 million for Environmental Programs
• $20.2 million for Health and Human Services
• $4.5 million for Preservation of Agricultural Land

Morgan Stanley led the bond underwriting syndicate that sold the bonds, which are scheduled to close on October 15, 2025.

"This successful bond sale was buoyed by investor confidence in Connecticut," continued Treasurer Russell, "due in large part to disciplined budgeting and our strong fiscal position relative to other states."

More information on the State's bonding program is available at www.buyctbonds.com.

About the Office of the Treasurer

The Office of the Treasurer is charged with safeguarding Connecticut's financial resources through prudent cash and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state's fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut's social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.

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Contact: Brett Cody
[email protected] | (959) 529-2468