Ten broker-dealers submitted bids for two separate bid groups, with Wells Fargo Bank winning the bid for $US 420.79m of bonds maturing in 2022 and 2029, and Jefferies winning the bid for $US 422m of bonds maturing in 2024 and 2026.
The bond sale was conducted under the voter-approved Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century of 2008.
The move comes after the governor of California, Mr Gavin Newsom, announced on February 12 the scaling back of California’s high-speed rail project due to spiralling costs and poor oversight.
Newsom confirmed that the 191km Merced - Bakersfield Central Valley section will be completed, even though in January, the California High Speed Rail Authority (CHSRA) announced that the cost of this section had increased from $US 7.88bn to $US 10.6bn and completion had been pushed back from 2025 to 2029.
On February 20, the United States Department of Transportation (USDOT) announced that the Federal Railroad Administration (FRA) intended to cancel $US 929m in federal grants awarded to the California high-speed rail project.
Associated Press reported that Newsom is due to present an update on the project to the State Legislature on May 1, including details of any changes.
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