RIHEBC issues $86.7M in tax-exempt bonds

PROVIDENCE – The R.I. Health and Educational Building Corp. last week announced the sale of $86.7 million in tax-exempt bonds under its Public School Revenue Financing Program Bond, according to a press release.
The issuance went toward refunding previously issued bonds from 2006, 2007 and 2008, which were used to finance school construction projects in Cranston, Cumberland, North Smithfield, Tiverton, Exeter West Greenwich Regional School District, Foster Glocester Regional School District and the Bristol Warren Regional School District, according to the release.
“In this low-interest environment, RIHEBC was pleased to refinance these bonds and produce significant debt services for school districts across the state,” said Robert Donovan, executive director at the nonprofit health and educational financing entity.
The bonds carry an Aa3 credit rating from Moody’s, and an interest rate of 1.95 percent, which the organization says is a significant drop from the 4.65 percent average of the prior issue. The refunding is estimated to generate $13.4 million in debt services through the remaining term of the bond, which RIHEBC says will reduce debt service paid by municipalities by $1 million per year.

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