What is the opportunity?
The Department is issuing its $470 million1 Central Valley Project Water System Revenue Bonds, Series AW, for the purpose of providing funds for the construction of certain Water System projects, to refund all or a portion of the Department’s outstanding commercial paper notes and outstanding bonds, to fund interest on a portion of these bonds, to fund a deposit to the Debt Service Reserve Account, and to pay costs of the issuance of such bonds.
The State of California Department of Water Resources is a department within the California Natural Resources Agency of the state of California. The Department is responsible for, among other things, the planning, construction, and operation of the State Water Project, the operation of programs for the safety of dams, flood management, local assistance, and subventions, other water-related matters, and the operation of the Power Supply Program.
The Series AW Bonds are special, limited obligations of the State of California Department of Water Resources. The bonds do not constitute a debt, liability, or obligation of the state of California. Neither the faith and credit nor the taxing power of the state of California is pledged to the payment of the principal of, or premium if any, or interest on the Series AW Bonds.
These bonds are rated "Aa1" by Moody's and "AAA" by S&P.2
Traditionally, municipal bonds will be subject to optional call features, and term bonds will generally have a Mandatory Sinking Fund feature. Please review the structure on the day of the pricing before placing an order.
The bond sale offers attractive benefits to individual investors, including prices and yields that match those available to institutional investors, the potential for stable income through the call dates, and, for California residents, federal and state tax-exemption on the bond coupon payments.
How to place an order
The offering is expected to price the week of October 10,1 although market conditions or the discretion of the issuer may affect this timeline or the amount of bonds offered. Individual investors can place orders online or by calling a Fidelity representative at 800-554-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts or visit our Municipal Bond New Issue offerings page.