Bond refinancing expected to save taxpayers in 15 communities $4M

JEFFREY R. Diehl, executive director of the R.I. Infrastructure Bank, said the successful bond refinancing is a “testament to the market’s confidence in the financial strength of our institution.” / COURTESY RHODE ISLAND INFRASTRUCTURE BANK
JEFFREY R. Diehl, executive director of the R.I. Infrastructure Bank, said the successful bond refinancing is a “testament to the market’s confidence in the financial strength of our institution.” / COURTESY RHODE ISLAND INFRASTRUCTURE BANK

PROVIDENCE – Approximately $4 million will be saved by 15 communities following the refinancing of two Clean Water bonds by the R.I. Infrastructure Bank.
According to a RIIB press release, taxpayers will save in those communities as well as Narragansett Bay Commission ratepayers.
Savings will occur through the refinancing of Clean Water Series 2007A & 2009A bonds, as the average interest rate on the original bonds was 4.8 percent and the new rate is 2.21 percent. The borrowers will save, on average, more than $250,000 annually over the life of the bonds.
RIIB sold a combined $49,060,000 in Refunding Bonds to refinance the outstanding bonds originally issued at higher rates. The refinanced 2007A and 2009A bonds have maturities of 2029 and 2031, respectively.

“The successful bond refinancing is a testament to the market’s confidence in the financial strength of our institution,” Jeffrey R. Diehl, executive director of the R.I. Infrastructure Bank, said in a statement. “The money we are able to save communities can be put to good use on other local initiatives.”
Participating communities and agencies include: Barrington, Bristol, Coventry, Cranston, East Greenwich, East Providence, Johnston, Middletown, Narragansett, Narragansett Bay Commission, Newport, North Smithfield, Smithfield, Warwick, West Warwick and Woonsocket.

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