A Good Investment

What Holland’s $158.8 Million Bond Offer Revealed about Our Community

The $158.8 million bond offer to fund construction of our new natural gas power plant was the largest municipal issuance in Holland’s history, and the overwhelming success of the sale is evidence of the vitality and promise of our community. These high-demand bonds sold out in less than two days, becoming important investments in the portfolios of many Holland residents.

“Our customers, a number of whom are also Holland BPW customers, were very happy with the opportunity to invest in one of the best names in Michigan,” commented John Cavanaugh, Vice President of Comerica Securities, one of three local investment firms involved the sale.

Earning credit ratings of Aa3 and AA from Moody’s and S&P respectively, the Holland BPW is among the highest-rated public utilities in its class. Factors contributing to these exceptional ratings include the experience and structure of the HBPW’s management team, our solid financial footing, the overall plan for expanding power generation, our competitive rates, and most importantly, the economic strength of our community.

Holland is home to a number of established, growing businesses, and our biggest power customers are diverse including automotive, furniture, and pharmaceutical manufacturing, food processing, education and healthcare. Despite the recession, our city is growing. Unemployment in the area is far below state average. Residential electricity usage has increased 10% in the past four years, and industrial usage is up 25%.

Our exceptional credit rating is about more than just the Holland BPW. It’s one to be shared by our entire community. The new power plant represents a significant investment in the future of our city, one that we will be able to count on to power our homes and businesses for years to come, and one that we all can be proud of.