PROVIDENCE, R.I. - General Treasurer /Governor-elect Gina M. Raimondo today announced that Rhode Island has sold $49,495,000 Certificates of Participation (COPs) issue. The funds will be used for energy conservation projects at Rhode Island College and the Pastore Complex in Cranston and for the acquisition of a modern, integrated computer system for the state's Division of Taxation. The energy cost savings generated from the energy projects should be sufficient to pay for the debt service on the COPs.
"The success of this offering illustrates investor confidence, locally and nationally, in our state," Raimondo said. "Transparency is paramount when it comes to public finances as is maintaining fiscal balance. Building and maintaining trust and confidence are essential to moving the state onto firmer financial ground. I commend Treasury staff, the state Budget Office and the state's financing team on an excellent job in bringing the issue to market."
"I am proud of the work completed by the Department of Administration's State Budget Office and the Department of Revenue's Division of Taxation," Governor Lincoln D. Chafee said. "I am especially proud of the teamwork and collaboration across our state offices, as well as with our partner institutions, that allowed this effort to be possible. Energy conservation and modernizing technology are two of my top priorities and I am glad to work with Governor-elect Gina Raimondo on these important initiatives."
The COPs were rated by Moody's Investor Service, Standard & Poor's Corporation and Fitch Ratings: Aa3, AA- and AA-, respectively. Interest rates on the issue ranged from .50 percent for a one-year investment to 3.43 percent for a 15-year investment. These interest rates translate into a true interest cost (TIC) of 2.31 percent. Earlier this month, Raimondo announced that the General Obligation Bond Sale was successful, generating $17 million in interest savings through a refunding.