$1.44 Billion State of Connecticut General Obligation Bond Sale Follows Improved Rating Agency Designation
/Connecticut State Treasurer Erick Russell has announced the results of last week’s successful $1.44 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.
“The GO Bond program plays a critical role in our state’s strategic infrastructure development,” said Treasurer Russell. “As a result of this successful bond sale, funds will be deployed to help strengthen communities and create jobs across Connecticut.”
The deal had four tranches: $300 million of federally taxable 2026 Series B new-money bonds; $800 million of 2026 Series C tax-exempt new-money bonds; $209 million of tax-exempt 2026 Series D refunding bonds; and $134.1 million of tax-exempt 2026 Series E forward delivery refunding bonds.
Combined, the two refunding series achieved $19.8 million in savings over the next nine years.
Ahead of the deal, S&P Global improved its rating outlook from stable to positive, in recognition of the state’s continued commitment to reducing its unfunded pension liabilities and sustaining healthy reserves.
Treasurer Russell gave individual (“retail”) investors priority on the bonds, according to the Treasurer’s Office. Following a robust initial order period amidst a volatile bond market, the state seized the opportunity to accelerate and complete the sale in a single day. Overall, the sale achieved total orders of $3.8 billion (approximately 3.5 times oversubscribed), including $770.7 million of Connecticut individual retail orders.
The 2026 Series C and 2026 Taxable Series B new-money bonds will fund various state bonded programs and capital projects, including:
$379.7 million for School Construction
$153.6 for Affordable Housing
$110.5 for Infrastructure and Public Safety
$105.0 million for Environmental Programs
$67.0 million for Economic Development
$60.0 million for Education and Public Libraries
$48.5 million for Capital Improvements
$45.0 million for Community Conservation Development
$40.0 million for Local Capital Improvement Programs
$30.0 million for Health and Human Services
$25.0 million for Crumbling Foundations Assistance Fund
$17.0 million for Small Town Economic Assistance Program
$10.5 million for Assistance to Distressed Municipalities
$7.1 million in Arts and Recreation
$1.1 million for Agricultural Land Preservation
The 2026 Series B, C, and D bonds are scheduled to be delivered on October 28, 2026 and the forward delivery 2026 Series E bonds are set to close on January 20, 2027.
“This successful bond sale was buoyed by investor confidence in Connecticut, due in large part to disciplined budgeting and our strong fiscal position relative to other states,” Treasurer Russell said.
More information on the State’s bonding program is available at www.buyctbonds.gov.
