State Treasurer Announces $444 Million State Transportation Bond Sale, Savings for Taxpayers

Connecticut State Treasurer Erick Russell has announced the results Wednesday of a successful State of Connecticut Special Tax Obligation (STO) Transportation Infrastructure Refunding bond sale.

The 2026 Series A bonds will refinance STO bonds issued a decade ago, in 2016.  The bond sale generated $492 million in proceeds which, together with $48 million in reserve funds released from the 2016 bonds enabled by the new STO Bond Indenture implemented in 2024, will produce $110 million in savings for taxpayers over the next 10 years, according to the Treasurer’s Office.

 “This transaction delivers significant savings for Connecticut citizens which will support meaningful improvements to transportation infrastructure,” said Treasurer Russell. “By using a competitive sale method for the first time in the STO program’s history, we tested the market and were able to drive down borrowing costs and achieved an excellent result for the state. Strong investor demand reflects continued confidence in Connecticut’s fiscal management and future.”

On Tuesday, June 9, 2026, for the first time in the history of the STO program, the Bonds were sold by competitive sale.  

During a competitive bond sale, qualified bond dealers compete head-to-head by placing bids to purchase the bonds for their investors through an online platform. Demand for the 10-year bonds was high with 11 bids received, including the winning bid of 2.90% from Barclays Capital, a second-place bid of 2.93%, and a tight range of just 0.12% between the lowest and highest bids.

The Bonds are scheduled to close on Wednesday, July 1, 2026.  The state’s last competitive bond sale was for its General Obligation Bond program in 2024. More information on the state’s bonding program is available at www.buyctbonds.gov.

Connecticut’s 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 thirteen state trust funds. To learn more, visit portal.ct.gov/ott