Rhode Island’s $144.7 million, three-part bond deal tomorrow will be the first in which an entire state has been designated a “recovery zone.”

The state’s general obligation deal includes $80 million of recovery zone economic development bonds. It will be the second-largest RZEDB deal sold since the taxable recovery zone bonds were created under the American Recovery and Reinvestment Act of 2009. Issuers are provided with a 45% federal subsidy on interest costs for capital projects in areas designated as recovery zones due to high unemployment, foreclosures, and economic distress.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.