WIFA Saves More than $4 Million Through Bond Refunding
FOR IMMEDIATE RELEASE
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[Phoenix, September 18, 2024] –
The Water Infrastructure Finance Authority (WIFA) went to the bond market for the first time in nearly a decade earlier this month with a bond refunding sale. Even in a crowded market, the sale yielded extremely favorable results, showcasing market confidence in WIFA and in Arizona’s water management future as a whole.
WIFA sold $110 million worth of refunding bonds with coupon rates of 2.51 (2025 maturity), 2.43 (2026 maturity), and 2.41 (2027 maturity). WIFA will realize $4.6 million in interest savings from the refunding. The modernized indenture on the bonds will also allow WIFA to free up over $38 million in debt-reserved funds for the Clean and Drinking Water State Revolving Fund programs (SRFs).
The SRF programs provide low-cost financing to water providers to address clean water and drinking water infrastructure needs. Projects financed by WIFA allow water providers of all sizes to reliably deliver safe, clean water to Arizonans across the state. WIFA’s diverse loan portfolio includes more than $818 million currently outstanding for 176 loans.
Despite media reports over the last year of investors questioning Arizona's water future, WIFA was able to attract investors in a very crowded market that included large, well-known entities like Washington D.C., Texas Transportation, the New York Transitional Finance Authority, and the State of Illinois. This strong showing reflects the ability of WIFA’s borrowers to effectively manage water resources and Arizona’s strong economic outlook. It also reflects WIFA’s superior financial management, which helped it earn a AAA credit rating from both Fitch and Standard and Poor’s. Both rating agencies also affirmed WIFA’s AAA rating on its existing bonds.
In addition to the SRF programs, WIFA also manages three state-funded programs: the Water Conservation Grant Fund, the Water Supply Development Revolving Fund, and the Long-Term Water Augmentation Fund. Throughout 2023 and 2024, WIFA allocated $200 million in conservation grants to fund 187 projects and save as much as 5.5 million acre-feet of water. Currently, WIFA’s Board is in the process of developing a competitive solicitation for water augmentation projects, which is expected to launch in late 2024.
All WIFA audited financials and bond rating reports are available on our Investor and Financial Relations page.
About WIFA
WIFA is a state agency dedicated to ensuring the sustainability of Arizona's present and future water supply through financial investments in effective augmentation, conservation, reuse, and water quality. WIFA is Arizona's administrator of the Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF), providing low-interest loans and technical assistance to water and clean water infrastructure projects, as well as three new funds aimed at conserving water and identifying new supplies. Over the last 30 years, WIFA has proudly invested almost $3 billion in communities throughout Arizona driving sustainable solutions and helping to secure Arizona’s water future.
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