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.”
