Finance: Vancouver USA
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Vancouver USA: Revenue Bonds Reflect Port’s Financial Health, Stability
In June, the Port of Vancouver USA issued revenue bonds for $40 million – the first issuance of its kind in the port’s history.
In the past, the port has issued general obligation bonds secured by a pledge to use legally available resources, including tax revenues, to repay bond holders. Revenue bonds are repaid solely from operating revenues.
The port commissioners approved the revenue bond issuance in December 2016. Since then, the port’s Finance and Accounting department has been working to prepare for the issuance, posting the bonds in mid-June.
The port’s strong financial history helped it secure an "A stable" rating from Standard and Poor’s, which in turn helped attract three times the amount of investment needed and low interest rates, saving millions of dollars over the 30-year life of the debt.
Funds from the bonds were used to pay off a $14.4 million line-of-credit debt, which was initially used to pay for right-of-way easements on the port’s Terminal 1 waterfront property and infrastructure components for the West Vancouver Freight Access project (WVFA). The balance will be used to fund budgeted projects for the port’s WVFA capital projects program as well as investments in the Centennial Industrial Building (CIB).
The port plans to issue additional revenue bonds in 2017 to invest in other potential revenue-generating possibilities and bring the decade-long WVFA to completion.
In June, the Port of Vancouver USA issued revenue bonds for $40 million – the first issuance of its kind in the port’s history.
In the past, the port has issued general obligation bonds secured by a pledge to use legally available resources, including tax revenues, to repay bond holders. Revenue bonds are repaid solely from operating revenues.
The port commissioners approved the revenue bond issuance in December 2016. Since then, the port’s Finance and Accounting department has been working to prepare for the issuance, posting the bonds in mid-June.
The port’s strong financial history helped it secure an "A stable" rating from Standard and Poor’s, which in turn helped attract three times the amount of investment needed and low interest rates, saving millions of dollars over the 30-year life of the debt.
Funds from the bonds were used to pay off a $14.4 million line-of-credit debt, which was initially used to pay for right-of-way easements on the port’s Terminal 1 waterfront property and infrastructure components for the West Vancouver Freight Access project (WVFA). The balance will be used to fund budgeted projects for the port’s WVFA capital projects program as well as investments in the Centennial Industrial Building (CIB).
The port plans to issue additional revenue bonds in 2017 to invest in other potential revenue-generating possibilities and bring the decade-long WVFA to completion.
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