daily californian logo

BERKELEY'S NEWS • NOVEMBER 27, 2022

Take a look at our 2022 midterm elections special issue!

CA state treasurer announces $1.1B in bonds to finance UC projects

article image

JONATHAN HALE | STAFF

According to state treasurer spokesperson Noah Starr, a wide range of investors have placed orders for the bonds.

SUPPORT OUR NONPROFIT NEWSROOM

We're an independent student-run newspaper, and need your support to maintain our coverage.

AUGUST 24, 2022

California State Treasurer Fiona Ma announced approximately $1.1 billion in revenue bonds toward finance projects overseen by the UC Board of Regents on Friday.

Revenue bonds are a type of government-issued bond that in this case funds projects and is issued by the state. According to state treasurer spokesperson Noah Starr, the $1.1 billion total is not subject to change.

According to a press release from Ma’s office, two series of bonds were sold that are meant to finance or refinance various projects of the UC system: $702.3 million in 2022 Series BK tax-exempt bonds and $65.2 million in 2022 Series BL taxable bonds. The remaining $318.0 million comes from 2023 Series BM tax-exempt bonds that are set to refinance previously issued bonds.

Starr noted state law requires the state treasurer to serve as the “Agent for Sale” for all bonds issued by the state or a state department, board, agency or authority.

The joint senior managers of the bond sale were Goldman Sachs and Morgan Stanley, in addition to 20 firms who participated as co-managers, according to the press release. Starr added there were a wide range of investors — individual retail accounts, separately managed accounts, trust departments, investment advisors, bond funds and insurance companies — that placed orders for the bonds.

According to Starr, the bonds were rated Aa2 by Moody’s Investors Service, AA by S&P Global Ratings and AA by Fitch Ratings. According to Fitch Ratings’ website, an AA grade indicates a bond of high credit quality and very low credit risk.

While unable to specify specific projects that would benefit from bonds, Starr referred The Daily Californian to the university, which has yet to respond for comment as of press time.

Check back for updates.

Contact Ayah Ali-Ahmad at [email protected], and follow them on Twitter at @ayahaliahmad.
LAST UPDATED

AUGUST 24, 2022


Related Articles

featured article
UC Berkeley has updated its Wi-Fi infrastructure following issues in signal coverage and strength over the past few semesters.
UC Berkeley has updated its Wi-Fi infrastructure following issues in signal coverage and strength over the past few semesters.
featured article
featured article
California state Sen. Nancy Skinner, D-Berkeley, and state Assemblymember Buffy Wicks, D-Berkeley, secured $15 million in state funding for repairs at the Berkeley Marina and Municipal Pier.
California state Sen. Nancy Skinner, D-Berkeley, and state Assemblymember Buffy Wicks, D-Berkeley, secured $15 million in state funding for repairs at the Berkeley Marina and Municipal Pier.
featured article
featured article
Several proposed bus improvements could come to Durant Avenue bus stops in the future, funded through the recently approved city council budget.
Several proposed bus improvements could come to Durant Avenue bus stops in the future, funded through the recently approved city council budget.
featured article