Refinancing strategy part of SAWS work to ensure fiscal stability
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.
