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The City awarded the 20-year bonds to Citigroup Globe Markets, Inc. at an interest cost of 3.82%. This is one of the lowest bond rates by municipalities in the recent past with the market being in a whirlwind since the subprime debacle stirred rates. It is the largest amount of bonds sold in Connecticut municipal issuances in the last five years. The proceeds of the bond issue will be used for municipal infrastructure and public improvement projects over the next 12 – 18 months as well as permanent financing of $47 million that the City issued for bond anticipation notes (BAN) last spring. This issue also includes short term bonds wherein debt repayments are higher for the first 7-years of the bonds to finance vehicle and equipment acquisitions, matching the useful life of the asset. Mayor Dannel P. Malloy said that Stamford's residents and businesses should be proud of this result. "Our community, our economy, and our government are very lucky to have the excellent credit ratings that we have in our triple-A from Standard and Poor's and Moody's Investors Service. We work very hard to preserve and enhance the value of Stamford's infrastructure and to make Stamford the inviting City that it is to business and to its residents. It is certainly gratifying to see our successes recognized by the financial markets." Ten banks bid on the bonds, including Citigroup, Banc of America, BB&T Capital Markets, Commerce Capital Markets, J.P. Morgan Securities, Inc., Lehman Brothers, Merrill Lynch & Co., Morgan Stanley & Co., Inc., and Robert W. Baird & Co., Inc. The second lowest bid was at an interest rate of 3.83% from Morgan Stanley. The highest bid was 3.97+% from Robert W. Baird & Co., Inc in Winston—Salem, N.C. The process was the culmination of hours of preparation on the part of the municipal finance staff, as well as Webster Bank (Financial Advisor) and Robinson & Cole, (Bond Counsel). © Copyright by StamfordPlus.com. Some articles and pictures posted on our website, as indicated by their bylines, were submitted as press releases and do not necessarily reflect the position and opinion of StamfordPlus.com, Stamford Plus magazine, Canaiden LLC or any of its associated entities. Articles may have been edited for brevity and grammar. Related Articles: Stamford achieves triple A bond rating - May 9, 2008 - 3:25:38 PM Angels sign former Bluefish Jesse Hoorelbeke - Dec 13, 2007 - 10:25:27 AM CURRENT HEADLINES: Top of Page
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