Rhode Island's recent $78.7 million general obligation bond refinancing will save the state $6.7 million over the life of the issue, which matures in 2025, according to General Treasurer Gina Raimondo.
These bonds sold May 7 at an interest cost of 2.22%, compared with 4.7% on the prior bonds, which were issued in 2005, 2006, and 2007 to fund various projects statewide.
"This successful financing allows us to continue to move towards investing in our future to improve our state's roads, bridges and higher education facilities," Raimondo said.
The transaction was 3- to 4-times oversubscribed in most maturities, enabling the lowering of yields during re-pricing by 4 to 7 basis points in some maturities. Involved were almost 200 orders and upwards of 20 institutional investors participated, Raimondo said in a statement.
Moody's Investors Service rates Rhode Island's GO bonds Aa2. Fitch Ratings and Standard & Poor's rate them AA.
