$150M in GARVEE Bonds for Transportation Projects

St. Croix Times Staff

Despite recent market volatility, the Bryan-Roach Administration scored a major victory for the Territory as the Virgin Islands Transportation and Infrastructure Corporation (VITIC), a subsidiary of the Virgin Islands Public Finance Authority, successfully priced and sold $150 million in GARVEE bonds, funding $96 million in major transportation projects and refinancing $54 million in existing bonds. 

The bond issue, which received strong investor demand and “A” ratings, achieved favorable interest rates and generated significant savings for the Territory. 

The $150 million GARVEE (Grant Anticipation Revenue) bonds will be used to fund key infrastructure projects including crucially needed road upgrades in St. Croix, the recently approved St. Croix to St. Thomas ferry, and Phase II of the Veteran’s Drive project on St. Thomas.

The sale allows the government to refund $54 million in outstanding 2015 GARVEE bonds, which yielded a considerable savings on interest, 

Confidence in the USVI is apparently on the upswing in financial markets as the sale attracted strong investor demand from leading financial institutions such as Goldman Sachs, Vanguard, Fidelity and Nuveen. 

“This financing marks a new milestone in terms of broad public support for the Territory,: stated Governor Albert Bryan Jr. “With this financing, we have secured financing for important transportation projects on a very low, fixed-rate basis. We greatly appreciate the support of our underwriters and our federal partners, who were critical in bringing this financing to a successful closure.”     

Nathan Simmonds, Director of Finance and Administration at the Public Finance Authority led the pricing effort in New York for VITIC.

“It is hard to overstate the current degree of volatility in the bond market,” said Mr. Simmonds. “But by the time we brought our issue to market, things had settled down, and we enjoyed widespread support. This turned out to be a good day for the Virgin Islands.”