General Treasurer's outreach to suitable Rhode Island retail investors over the past month results in 95% of $107 million State bond deal being purchased locally

PROVIDENCE 12/2/2008 - General Treasurer Frank T. Caprio announced today that Rhode Island retail investors have purchased a record $102 million in General Obligation bonds, a sale which was completed on Tuesday, December 2nd. That amount represents 95% of the total amount of municipal bonds offered.

"For the second time in just over a month we made these tax-free bonds available to suitable Rhode Island investors first, and once again they had a strong interest in purchasing them," said Treasurer Caprio.

"This is a record level of retail purchases for a Rhode Island municipal bond sale," said Maureen Gurghigian, Managing Director at First Southwest Company and a financial advisor to the State of Rhode Island for over 20 years.

The $107 million bond sale is a result of voter-approved borrowing from the 2004 and 2006 elections.

The bulk of the money will go towards: highway and road projects; the completion of the biotech research center at the University of Rhode Island and upgrades at the Roger Williams Park Zoo.

Other major capital improvement projects will also benefit from the bond sale, as will affordable housing; historic preservation and open space. "The money will help stimulate the local economy," Caprio said.

"These General Obligation bonds proved to be very attractive to Rhode Island retail investors with their tax-free interest and stable value," said Caprio.

"I also want to thank the local investors and brokers who have worked so closely with my office. Their focus resulted in this investment option being made available first to suitable local investors, then the larger financial institutions," said the General Treasurer.

"The results of the bond sale indicate that suitable Rhode Island investors have a strong interest in this asset class which, until recently, was difficult for them to access," said Caprio.

Today's bond sale offered different maturities ranging from one year to twenty years in the life of the bonds.

The tax-exempt bonds had annual interest rates ranging from 2.23% on a 1-year bond; 3.33% on a 5-year bond; 4.42% on a 10-year and 5.62% on a 20-year bond.

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