Late last month the Port of Vancouver USA issued its second series of revenue bonds, totaling $30 million. Thanks to strong order activity, the port’s “A stable” credit rating and favorable market conditions, the port received an interest rate that will save $4.2 million over the life of the bonds.
“Our team works very hard to come up with innovative, cost-effective methods of financing our capital projects,” said Director of Finance and Accounting Scott Goodrich. “Saving money on these bonds will allow us to invest in key infrastructure and economic development opportunities now and in the future.”
The port has issued general obligation bonds in the past, which are secured by a municipality’s pledge to use legally available resources, including taxes collected, to repay bond holders. Revenue bonds are different; the guarantee of repayment for these bonds is solely from operating revenues rather than from taxes.
Acquisition of the 2017 revenue bonds allows the port to complete major projects such as the West Vancouver Freight Access Project and for acquisition, improvements and repairs to port properties and facilities.
The port’s Board of Commissioners voted unanimously last December to adopt a resolution authorizing the issuance of 2017 revenue bonds. These bonds are the second in a series of three major debt issuances that support the port’s capital program, which aligns with the port’s Strategic Plan. The port plans to issue the third and final bonds of this series next year, issuing between $15 and $25 million.