DC Water, which made waves earlier this year by issuing $350 million in green century bonds, successfully priced $377.7 million of its bond debt at lower interest rates to save more than $50 million.

DC Water General Manager George S. Hawkins, said, “DC Water explores every avenue to achieve savings and efficiencies to ensure that ratepayers’ dollars are used as responsibly as possible. The recent volatility in the stock market created a very favorable bond market. We took advantage to refinance bonds and saved more than $50 million in the process."

DC Water sells bonds to fund its long-term capital projects. Since DC Water must meet strict federal mandates, it currently has more than $3.6 billion in environmental projects under construction, most of which is being financed by bond sales. Debt service is paid by DC Water from its operating budgets and is becoming an increasingly larger part of the operating budget. Refinancing bonds at lower interest rates lowers that amount and allows for a more optimal allocation of resources.

In last week’s deal, DC Water reissued Public Utility Subordinate Lien Revenue Refunding Bonds, Series 2014C to advance refund a portion of the Authority’s outstanding debt for debt service savings and to current refund a series of outstanding floating rate notes. The advance refunding generated in excess of $50 million in gross debt service savings for DC Water over the life of the bonds. In present value (PV) terms, the transaction generated over $35 million (or 10 percent) in PV savings. Goldman, Sachs & Co. was book-running senior manager, leading a six-member syndicate underwriting the bonds.

In recent years, the Authority has had great success in the bond market. Earlier this year, DC Water issued $350 million in taxable, senior lien, fixed rate green century bonds in a historic sale. In 2013, DC Water issued $300 million in bonds in a one-day sale and in 2012, DC Water issued $277 million in new bond financing and re-issued $163 million at much lower interest rates.