RIHEBC issues $90.8M in higher education refunding revenue bonds, saves $24M in debt service

PROVIDENCE – The R.I. Health and Educational Building Corp. last week announced it has issued $90.8 million in higher education refunding revenue bonds to the state, resulting in $24 million in total debt service savings.
The quasi-governmental agency, known as RIHEBC, issued the bonds to the R.I. Board of Education’s Council on Postsecondary Education, according to a release. The debt services will go toward saving money on projects for the University of Rhode Island and Rhode Island College, averaging about $1.2 million annually for the remaining term of the bond.
“We are always looking for ways to pass along savings to our students and citizens,” said Susan LaPanne, associate commissioner for finance and management at the Board of Education. “This opportunity will free up revenue that we can direct toward improving access and affordability.”
The proceeds from the debt servicing will provide $5.4 million for utility infrastructure and pavement improvement projects at the University of Rhode Island.
The bond issue averages an interest rate of 2.66 percent containing three series with an Aa3 rating on Series A and an A1 rating and on Series B and Series C.

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