The San Diego County Water Authority announced it completed refinancing of a series of bond issues in April to save water customers $48 million in interest payments.
The savings from refinancing the Series 2021S-1 and 2021B bonds is a result of the agency’s continued strong credit ratings affirmed in March. Both issues are so-called “green bonds” to support sustainable water management and other environmental projects.
“The Water Authority continues to navigate complex challenges, including the pandemic, to benefit the San Diego region’s ratepayers with lower borrowing costs,” said Board Chair Gary Croucher. “Our experienced management team is saving money for water users while also promoting environmental sustainability and generational equity — a credit to our prudent fiscal policies and practices.”
The water authority said it has saved ratepayers more than $278 million with bond refinancing over the past decade, lowering the cost of borrowing for major capital projects that help to ensure water supply reliability, particularly during dry years like 2021.
In March, all three major rating agencies — S&P, Moody’s, and Fitch — affirmed the authority’s strong credit ratings, which helps the agency optimize its debt portfolio and minimize the cost of financing important water reliability projects.