State of Hawaii Taxable General Obligation Bonds of 2020, Series FZ Investor Presentation
Debt Management
The State has a long track record of conservative debt management practices that are governed by a
formal debt management policy
■ Principal and interest on G.O. Bonds are a first charge on the
General Fund and have a pledge of full faith and credit
G.O. Bonds have conservative Constitutional constraints on
debt structure
Limits final maturity to 25 years and principal can be deferred
no more than 5 years
Requires level debt service or level principal amortization
Maximum annual debt service can be no more than 18.5% of
the average of the prior three year General Fund revenues
No statewide ballot initiatives required for debt issuance
■ The State conservatively manages its debt portfolio
Bonds issued with 20 year maturity and level debt service
100% fixed rate G.O. debt with no derivatives
68% of principal amortizes over the next 10 years
BABS debt service is budgeted on a gross basis
G.O. debt service as a percentage of General Fund revenues
has been relatively constant across multiple economic cycles
14%
12%
10%
8%
6%
4%
2%
0%
Millions
$1,000
$800
$600
$400
$200
$-
2021
2022
2023
2024
2025
STATE
G.O. Debt Service Profile (1)
68%
■General State Projects (46%)
Department of Education (40%)
University of Hawaii (14%)
2026
2027
2028
2029
Fiscal Year
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
Debt Service as % of General Fund Revenues (2)
15 (1)
Excludes $321 million of reimbursable G.O. Bonds and $600 million Bond Anticipation Notes. The State also has a de minimis amount of Certificates of Participation outstanding.
(2) Excludes reimbursable G.O. Bond and Bond Anticipation Notes debt service.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Fiscal Year
2017
2018
2019
2020
1959
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