PROVIDENCE – The Rhode Island Infrastructure Bank recently refinanced the Drinking Water State Revolving Fund bond, generating a savings of $559,826 for five municipal borrowers, according to the bank.
Pawtucket will save $329,048; Providence Water will save $148,118; Woonsocket will save $33,048; Newport will save $25,266; and Bristol County Water will save $23,542, the bank said.
The refinancing transaction was part of the bank’s strategic efforts to capitalize on the low interest rate environment, refinance existing debt and pass on those savings to customers and taxpayers.
Over the past five years, the bank said, it has provided more than $25 million in additional savings to borrowers by proactively refinancing debt at lower interest rates. Those savings, the bank said, allow borrowers to make additional investments in critical community assets.
“The city of Pawtucket has made record investments in our local infrastructure, due in part to the innovative, low-cost borrowing programs available through the infrastructure bank,” Pawtucket Mayor Donald R. Grebien said in a statement. “The city, and its entities [such as] Pawtucket Water, will continue to see savings and efficiencies to ensure that our taxpayers are getting the best bang for their buck.”
Rhode Island Infrastructure Bank CEO Jeffrey Diehl summed it up.
“The creation of the Rhode Island Infrastructure Bank has been progressive, and in retrospect, it makes a lot of sense,” Diehl said. “We are a centralized hub of local infrastructure finance.
“It all started with a decision 30 years ago to put the finance side of the Clean Water State Revolving Fund into a separate agency,” he added.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
