Stamford recently sold $50 million of tax-exempt, general obligation bonds at a true interest cost of 2.67 percent. City leaders claimed a $700,000 savings across the 20-year life of the bonds.
The interest rate secured was the second-lowest rate in the city’s history and significantly lower than rates recently obtained by comparable municipalities throughout the U.S., Mayor David Martin’s office said in a statement.
The higher the rate, the more a municipality pays out in returns to investors.
“This successful bond offering is confirmation to our citizens, both private and corporate, of Stamford’s strong financial health, which has allowed us to finance critical investments in our infrastructure at an extraordinarily low borrowing cost,” Martin said in a statement.
The competitive bidding of 19 underwriters contributed to the successful bond offering, according to the mayor’s office, which noted similar AAA-rated communities have secured rates of about 2.85 percent in their recent bond offerings.
Martin credited the city’s financial team and the strength of the Stamford’s financial health with helping to secure the lower rate.
The city’s financial adviser, Barry Bernabe, managing director of Phoenix Advisors, said, “The strong bidding results reflect investors’ confidence in the city’s financial performance and management practices.”