Bond Refinancings Save Borrowers $5.9 Million

The Bank recently refinanced bonds that will save the City of Cranston, the Providence Water Supply Board, the Bristol County Water Authority, and the City of Newport a combined $5.9 million in future debt service.

By refinancing bonds issued to finance projects through the Bank’s Drinking Water State Revolving Fund, the Providence Water Supply Board, Bristol County Water Authority and City of Newport will benefit from a combined $1.5 million in savings.

In a separate transaction, the Bank will provide $4.4 million in savings to the City of Cranston by refinancing outstanding debt used to finance improvements to the City’s wastewater treatment system. As a result of the refinancing, the City was able to keep sewer fees flat, avoiding a planned 5% increase.

In response to low interest rates, the Bank has sought to proactively manage its balance sheet as a way of delivering savings to borrowers. Since October 2015, the Bank has provided $21.2 million in savings to borrowers by refinancing existing debt at lower interest rates.

“Rhode Island Infrastructure Bank is committed to proactively exploring opportunities to save our customers money and reduce the cost of infrastructure investment,” said Jeffrey Diehl, CEO of Rhode Island Infrastructure Bank. “By refinancing existing debt at lower interest rates, we can provide savings to our customers and maximize the amount of capital available to finance important infrastructure projects,” Diehl added.

The savings for the drinking water bond refinancing were distributed as follows:

Borrower	Drinking Water Bond Savings
Bristol County Water Authority	$172,797.44
Newport	$183,414.78
Providence Water Supply Board	$1,117,785.59
Total:	$1,473,997.81