Pavia: Stamford Sells $50M in Bonds at Record-Low Borrowing Rate

Mayor Michael Pavia today announced the City of Stamford had sold $50 million of 20-year tax-exempt, general obligation bonds at a true interest cost of 2.249%, the lowest long-term borrowing rate ever achieved by the city, according to a release from his office.

"This successful bond offering is confirmation to our citizens, both private and corporate, of the continuing financial health and stability of our city which allows us to make critical investments in our infrastructure at such an attractive low rate of interest," Pavia said. "Today’s successful bond offering is a validation of investor confidence in our employees’ ability to provide efficient and cost-effective service, despite a constrained economic environment."

Pavia said in the release that in spite of an uptick in U.S. Treasury rates, investor interest in Stamford's bonds was very broad and contributed to this successful bond offering.

"In a difficult financial environment the City continues to show strong fiscal discipline," said Barry Bernabe, Stamford's Financial Advisor, in the release. "While most cities are struggling to manage their operating budgets, Stamford continues to successfully increase their reserve funds which have led to the City’s strong credit quality and low borrowing costs."

The City’s bonds are rated "AAA" by Standard & Poor’s and "Aa1" by Moody’s Investors Service. The bonds were sold to William Blair & Co, LLC, one of 12 institutions who bid on Stamford’s bonds.