ST3: $477 million bond sale secures lower borrowing costs for taxpayers for light rail extensions

Sound Transit has executed the sale of $477 million in green bonds that will help fund voter-approved regional transit projects, including work to continue building more than 90 miles of voter-approved light rail extensions.

"Every dollar we save in borrowing costs is one less dollar the taxpayers must pay to build our future transit system," said Sound Transit Chief Executive Officer Peter Rogoff. 

"Borrowing at these historically low rates will also insulate us from potential market downturns in the future."

The bond sale will generate proceeds to fund voter-approved transit expansions. The sale consisted of fixed-rate bonds at a total interest cost of 3.596 percent. The favorable rate is significantly lower than the 5.3 percent average over the last 30 years.

In issuing the new bonds following last month's passage of the Sound Transit 3 ballot measure, the agency received a rating upgrade from Moody's for its most senior bonds (Prior Bonds) from Aa1 to its highest AAA rating. Moody's also upgraded the agencies prior bonds, including the $477 million bond sold this week, from Aa1 to Aa2.