Overview:

-GLWA bond deal secures $230 million in new money proceeds for water system improvements and $50 million for wastewater improvements.
-“Improved bond ratings are critical because they directly translate into a lower cost of borrowing and open the doors to more investors interested in buying our bonds, which also drives down the cost of borrowing,” says GLWA board member Brian Baker.
-As part of the deal, GLWA says it executed two forms of debt refinancing that will save $77 million in future payments through 2040.

The Great Lakes Water Authority said Wednesday it secured $280 million in funding for regional water and sewer system improvements after executing a bond sale that was accompanied by a credit upgrade from Fitch Ratings.

Fitch upgraded GLWA’s sewer system bonds, signaling greater financial stability and making the bonds more attractive to investors, according to the regional water utility.

The bond deal secured $230 million in new money bond proceeds to fund water system capital improvements and $50 million in new money bond proceeds for wastewater system improvements, GLWA said. 

“Improved bond ratings are critical because they directly translate into a lower cost of borrowing and open the doors to more investors interested in buying our bonds, which also drives down the cost of borrowing,” said Brian Baker, chair of GLWA’s audit committee, and a board member appointed by Macomb County.

MORE GLWA COVERAGE

As part of the deal, GLWA said it executed two forms of debt refinancing that will save $77 million in future payments through 2040. GLWA bought back $625 million in older bonds from investors and replaced them with new, lower-interest bonds. The strategy will save $43 million over time, and a separate refinancing adds another $34 million in savings, according to GLWA. 

Part of the funding will support capital projects aimed at increasing system resiliency and reliability. 

“The savings from this transaction, as well as the ability to borrow at favorable rates, allow us to meet those priorities while placing less burden on the consumer,” GLWA CEO Suzanne Coffey said in a statement.

Maya Moore joins Planet Detroit as a summer 2025 intern focusing on video coverage. She graduated from Michigan State University in May 2025 with a bachelor's degree in journalism and a bachelor's in public policy.