Guam - The Guam Power Authority will get the funding it needs to improve its systems. The agency today successfully sold $76.47 million of revenue bonds that will be used to fund energy storage systems, system improvements and the initial funding of GPA's proposed energy conservation plan. GPA's bond sale was well received by investors who submitted nearly $700 million of orders in less than an hour. “Investors have once again heard our message and have demonstrated their support for our island by continuing to invest in our community. GPA was able to take advantage of favorable market conditions and low interest rates to secure financing for needed capital improvements,” said Governor Eddie Calvo.
Leading up to today's sale, representatives from GPA and the Guam Economic Development Authority spent time marketing GPA and Guam to investors. “We continue to deliver on Governor Calvo's promise three years ago to increase transparency and communication with investors. Under the Governor's direction, we have prioritized meeting on a regular basis with both rating agencies and investors. This open communication and the Governor's commitment to fiscal responsibility have increased investor interest in Guam resulting in lower interest rates on all Guam credits,” according to Lester Carlson, Public Finance Manager for GEDA.
Due to the strong demand, investors were willing to pay a significant premium to purchase the bonds, which enabled GPA to reduce the par amount borrowed by $7.8 million while still receiving $83.6 million in net proceeds.