R.I. Infrastructure Bank refinancing saves $6M

MERRILL W. SHERMAN, board chair of the Rhode Island Infrastructure Bank, said the refinancing
MERRILL W. SHERMAN, board chair of the Rhode Island Infrastructure Bank, said the refinancing "reflects the confidence of the market in our agency's financial strength." / PBN FILE PHOTO/RUPERT WHITELEY

PROVIDENCE – To take advantage of lower interest rates, the Rhode Island Infrastructure Bank has refinanced $47 million in Water Pollution Control bonds, realizing $6 million in savings.

“This successful refinancing reflects the confidence of the market in our agency’s financial strength,” Merrill W. Sherman, board chair of the Rhode Island Infrastructure Bank, said in a statement.

“In addition to lowering costs to local communities, this refinancing better positions the Infrastructure Bank to support Gov. Gina Raimondo’s economic development and jobs initiatives,” she said.
According to a news release from the Rhode Island Infrastructure Bank, some of the savings will be returned to borrowers, including 13 communities and the Narragansett Bay Commission. The rest of the savings will be used to support the bank’s projects, such as reinvestment in infrastructure projects throughout the state.
The bonds, which have 11- and 12-year maturities, were rated AAA by both Standard & Poor’s and Fitch, the release stated.
In July, legislation signed by Raimondo established the RIIB and expanded its programs to include energy efficiency and renewable energy projects in public, commercial and residential properties.

RIIB, previously known as the Rhode Island Clean Water Finance Agency, is a quasi-public agency that serves as the financial administrator of the clean water and drinking water state revolving funds.

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The bank issues bonds, the proceeds of which are used to provide low-cost financing to Rhode Island’s municipalities and sewer and water utilities for infrastructure projects, the release stated.

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