Buffalo, N.Y., on Tuesday auctioned $39.8 million of bonds in three series at the lowest interest rates in the city’s history.

Raymond James & Associates Inc. was the lowest bidder for the first series of $21.6 million general improvement bonds, with an interest rate of 2.48%.

The firm also won the bid for the $13.2 million of refunding bonds, with a 2.25% interest rate.

The refunding bonds will save the city more than $1.6 million by reducing the interest rate on existing debt by more than half, according to a statement from the city.

UBS Financial Services Inc. won the bid for the third series of $5 million of school bonds, with a 2.96% interest rate.

“Buffalo has never even come close to interest rates below 3% on its bonds before these deals,” said city Comptroller Mark Schroeder, adding that it’s also the first time Buffalo has sold debt without the need to purchase bond insurance.

Schroeder attributed the lower interest rates to the city’s recent upgrade to A1 from A2 from Moody’s Investors Service.

The bonds are rated at A by Standard & Poor’s and A-plus by Fitch Ratings.

All three rating agencies assign stable outlooks.

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