04/29/2025
TREASURER RUSSELL, MAYOR ARULAMPALAM, TREASURER SIERRA ANNOUNCE $7.2 MILLION IN SAVINGS AFTER REFUNDING SALE OF CITY OF HARTFORD SPECIAL OBLIGATION REVENUE BONDS
HARTFORD, Connecticut – State Treasurer Erick Russell, Hartford Mayor Arunan Arulampalam and Hartford Treasurer Carmen Sierra today announced a successful $116.6 million refunding sale of City of Hartford State Contract Assistance bonds, resulting in $7.2 million in debt service savings for Connecticut taxpayers over the next ten years. The sale took place on April 24.
“This successful bond sale is a significant win for the City of Hartford and for all Connecticut taxpayers,” said Treasurer Russell. “I want to thank Mayor Arulampalam, Hartford Treasurer Sierra, and their staffs for their collaboration. Thanks to our strong partnership, we were able to efficiently bring a refunding bond sale to market for the second time since 2023.”
“Saving $7.2 million over the next decade for the State of Connecticut means we can continue to invest in Hartford’s future while keeping our fiscal house in order. I’m grateful to Treasurer Russell, Treasurer Sierra, and all the professionals whose hard work made this possible. Together, we are delivering real results for Hartford’s taxpayers and building a stronger, more sustainable city for everyone,” said Mayor Arulampalam.
“I am proud to have played a key part in the team that brought about the refunding of these bonds. Working collaboratively and in partnership with the State Treasurer and the Mayor, we will save over $7.2 million for state taxpayers over the next 10 years thanks to this transaction,” said Treasurer Sierra. “This type of sound fiscal policy is what I fight for every day, as the people of Hartford’s Treasurer.”
This is the second sale of City of Hartford bonds under the contract assistance agreement Hartford entered into with the state in 2018. This sale of tax-exempt City of Hartford Special Obligation (State Contract Assistance) bonds will refinance all or a portion of four series of higher-interest City of Hartford general obligation bonds.
Hartford and the state collaborated to identify bonds that could be refunded for savings. By refunding existing debt at lower rates, the state’s fixed costs will be lower, generating savings for taxpayers for years to come.
Orders and Interest Cost
Orders from investors on the bond offering totaled $467 million, exceeding the amount of bonds offered by four times and contributing to the 3.69% borrowing cost on the ten-year bonds.
Prior to the sale, both Moody’s Investors Service and S&P Global Ratings assigned their ratings for these bonds. Moody’s rating is “Aa3” with a Positive Outlook and S&P's is “AA-” with a Stable Outlook. These ratings mirror the State of Connecticut’s ratings, because the security for the bonds is the contract assistance payments made by the State to pay the debt service on the bonds.
“The Hartford bonds were originally scheduled to price the week of April 28,” said Treasurer Russell, “but after the resounding success of the State’s GO bond sale on April 23, the transaction team pivoted quickly to accelerate Hartford’s sale to take advantage of investor interest in the State’s credit.”
Raymond James and Siebert Williams Shank co-led the bond underwriting syndicate that sold the bonds, which are scheduled to close on May 21, 2025.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management 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.
Contact: Brett Cody
brett.cody@ct.gov | (959) 529-2468