The purpose of this web page is to provide disclosure and other information related to the issuance of WSSC bonds and other debt obligations. To enhance transparency for our investors, WSSC produces an annual report on the status of all outstanding notes and bonds (copies of which are included on this page). We encourage readers to look through this information. Also, our debt policy is available for review to better understand the procedures and goals of WSSC Water.
On December 12, 2019, WSSC sold $233,565,000 Consolidated Public Improvement (CPI) Bonds of 2019 and $53,880,000 Consolidated Public Improvement (CPI) of 2019 (Second Series)(Green Bonds) through competitive sale. WSSC received 6 bids with the winning bidder for both series, Bank of America Merrill Lynch, offering the lowest true interest cost of 2.64 percent. The Commission issued their first Green Bond Series to allow investors to invest directly in bonds which finance environmentally beneficial projects (Green Projects). For more information, visit our Green Bond program page.
WSSC Water engaged S&P Global Ratings (S&P) to conduct an independent green bond assessment of the Second Series and issue its Green Bond Principles Alignment Opinion with respect herein. S&P has assigned the Second Series an overall score of E1/80. This score is considered to be among the highest when compared to a similar peer group.
WSSC, in a prior sale sold $390,000,000 CPI Bonds of 2018 through competitive sale. WSSC received five bids for the CPI Bonds with the winning bidder, Goldman Sachs & Co. LLC., offering the lowest true interest cost of approximately 3.59 percent.
For background, bonds are issued as the Washington Sanitary Suburban District, which is a sanitary district incorporated under Chapter 122 of the Acts of the General Assembly of 1918, as amended. It is governed by and under the jurisdiction of a commission of six members constituting a statutory body corporate under the name Washington Suburban Sanitary Commission (the “Commission”). The District operates as a public corporation of the State of Maryland under the Public Utilities Article of the Annotated Code of Maryland, as amended (the “Public Utilities Article”). Through its governing body, the Commission, it provides, as authorized, water and sewerage systems, including water supply and sewage disposal facilities for Montgomery and Prince George’s counties, Maryland. The Commission is authorized to issue debt under the Public Utilities Article and includes the nature and form of debt, exemption from taxation, eligible projects for debt proceeds and debt retirement, refunding provisions, consolidation for sale provisions and other guidelines. Debt is issued as needed to finance (i) the costs of construction or reconstruction of water supply facilities, water supply lines and transmission mains, sewage disposal facilities, sewer collection mains and trunk sewers; and (ii) the costs of issuing the Bonds.
WSSC enjoys top bond long-term ratings from three major rating agencies:
These highest-level ratings reflect WSSC Water's strong service area, robust financial position, and accomplished financial management.