San Antonio Water System: Bond Refinancing Will Save Ratepayers $41 Million
San Antonio Water System has taken advantage of the current low-interest rate environment to refinance outstanding debt for savings. Today, SAWS refinanced more than $100 million of its water system revenue bonds, saving ratepayers more than $41 million over the next 21 years.
The savings came from bonds originally issued in 2012 to fund SAWS capital improvements.
"Our bond offering had a resounding reception in the marketplace and achieved significant savings for our customers. It was a great way to start the New Year," said Doug Evanson, SAWS Senior Vice President & Chief Financial Officer.
Buyers take into account an organization's: strong credit rating; its stability; confidence of its City Council; and its ability to increase revenue.
Refinancing bonds are part of the utility's ongoing efforts to minimize costs and ensure fiscal stability. Much like refinancing a home mortgage, this effort allows SAWS to secure a lower interest rate and therefore lower interest payments on its outstanding debt.
San Antonio Water System provides water and wastewater services to more than 1.8 million customers in the San Antonio region and continues to set the standard for service and water conservation within our industry. SAWS is the national leader in water innovation with the largest direct recycled water system in the country, a state-of-the-art inland desalination plant, and the largest groundwater-based Aquifer Storage & Recovery facility in the nation. For more information, visit www.saws.org.
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