The District of Columbia (Washington D.C.) is expected to come to market with $387.5 million1 in General Obligation Bonds, Series 2026A, and $542 million in General Obligation Refunding Bonds, Series 2026B, (collectively, the "Series 2026A-B Bonds".)
Proceeds of the Series 2026A Bonds will be used, together with other funds of the District, to (1) pay or reimburse the District for capital project expenditures under the District’s capital improvements plan, (2) refund a portion of the District’s outstanding District of Columbia General Obligation Commercial Paper Bond Anticipation Notes, Series 2025A (the “refunded C.P. Notes”), and (3) pay the costs and expenses of issuing and delivering the Series 2026A Bonds.
The proceeds of the Series 2026B Bonds will be used, together with other funds of the District, to (1) purchase for cancellation the Purchased Bonds pursuant to the Tender Offer as described in the Invitation (all as defined herein), (2) pay the costs and expenses of the Tender Offer, (3) refund the Refunded Bonds (as defined herein), and (4) pay the costs and expenses of issuing and delivering the Series 2026B Bonds.
The Series 2026A General Obligation Bonds and Series 2026B General Obligation Refunding Bonds are general obligations of the District of Columbia (the "District") and the full faith and credit of the District is pledged to the payment of the principal of and interest in the revenue derived from the Special Real Property Tax (as defined in the Preliminary Official Statement), which is levied annually by the District, without limitation as to rate or amount, in amounts sufficient to pay the principal of and interest on the Series 2026A-B Bonds and any other outstanding general obligation bonds when due.
The Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement. The bonds are rated "Aa1" by Moody's, "AA+" by S&P", and "AA+" by Fitch.2
Key benefits
The bond sale offers attractive benefits to individual investors including prices and yields that match those available to institutional investors and the potential for stable income through the call dates. And, for District of Columbia residents, federal and District tax-exemption on the bond coupon payments.
How to place an order
The offer is expected to price the week of February 9, 20261, although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders online or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts and see our Municipal Bond New Issue Offerings.
