PROVIDENCE – The city recently closed a transaction refunding its 2021 general obligation bonds, according to a news release.
The new, five-year tax-exempt bonds were issued at a 0.93% interest cost, while taxable bonds were issued at a 2.02% interest cost and seven-year maturity. The bond issuing will pay off the city’s existing bonds at a 4.99% rate.
Cybersecurity Awareness Month: What to Do When Your Identity Is Stolen
In recognition of Cybersecurity Awareness Month, it is important to remember that identity theft affects…
Learn More
The interest rate differential will provide $1.8 million in savings in fiscal year 2021 and $220,000 in fiscal 2022 for a total savings of $2.02 million, according to the release.
The City Council in December authorized refunding of the city’s 2010 general obligation bonds, which were estimated to generate $1.3 million in net savings to cover the city’s outstanding pension liability.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
