PROVIDENCE – The state has succeeded in expanding its pool of eligible bond underwriters, R.I. General Treasurer Frank T. Caprio announced today.
“There was a tremendous response to the RFQ” issued by the state two months ago, Caprio said in a statement.
The state’s request for qualifications was the first of its kind since 2000.
The RFQ drew responses from 30 financial services firms interested in working with the state, 18 of which have qualified as either senior or co-managing underwriters. The qualified underwriters will serve for two years, a term that can be extended at the state’s discretion, Caprio said.
Six firms were qualified as senior managing underwriters, who coordinate the entire bond process from planning and market-rate projections to overseeing the sale of bonds, Caprio said. They are: Citigroup; Goldman Sachs; Lehman Brothers; Merrill Lynch; Morgan Stanley; and UBS.
Another 12 were qualified as co-managing underwriters, who are responsible for selling bonds and who assume a portion of the liability for any unsold bonds: A.G. Edwards; Banc of America Securities; Bear Stearns; Carolan and Co., Division of Oppenheimer; First Albany; Janney Montgomery Scott; J.P. Morgan; Roosevelt & Cross; Ramirez and Co.; RBC Dain Rauscher; Sovereign Securities; and Webster Financial Corp.
“There are a great many factors which go into this kind of selection process, including having a strong regional balance, the right mix of expertise in particular market sectors and a strong core of underwriters with experience selling bonds in Rhode Island,” Caprio said.
Having a larger pool of companies serving in both roles helps the state by leading to more ideas for saving money, the treasurer said. “As a result of this RFQ, we have expanded the pool of underwriters and made sure that our taxpayers get the best possible value.”
Additional information is available at www.treasury.ri.gov.
