Refunding Saves the State $17 Million
PROVIDENCE, R.I. - General Treasurer Gina M. Raimondo today announced Rhode Island's General Obligation Bond sale this week was a success. This $162 million refinancing of approximately $174 million existing debt will save the State more than $17 million over the life of the issue, which matures in 2027.
These bonds, which received strong investor interest, sold at an interest cost of 2.29 percent as compared to 4.95 percent on the prior bonds, which were issued in 2006, 2007 and 2008 to fund various projects statewide.
"With this most recent bond offering, Rhode Island taxpayers once again will benefit from solid savings," Treasurer Raimondo said. "This successful refinancing allows us to continue to invest in our State's future."
Rhode Island's ratings were re-confirmed for this recent offering at: Moody's Aa2, Standard & Poor's AA and Fitch AA.
Additionally, Moody's recent decision to raise their ratings outlook from negative to stable was received in connection with this recent offering.
"Moody's decision is good news for the State of Rhode Island," Raimondo added. "This change in status is due in large part to our pension reform efforts, as the rating agencies recognize our steps toward providing for the continued stability and predictability of the retirement system. The state's sound management practices, our efforts to fund our rainy day reserves and our commitment to paying all of our state debts, have all contributed to putting the state on a stronger financial footing. These factors combined to make this financing very successful for the State."
The State also sold $46 million in new money bonds for a variety of projects that voters had approved over the years, including transportation, environmental management, higher education, clean water programs, affordable housing and the Veterans Home.