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Rhode Island Authority Sells $77 Mln in Bonds for Public Schools

By Munichain News Desk

The Rhode Island Health and Educational Building Corporation issued $76.8 million in bonds to finance school upgrades in East Providence.

The bonds mature between 2028 and 2049, yielding between 2.56% and 4.02%. They pay interest at 5%. The securities received a rating of AA from S&P Global Ratings.

The corporation will loan the bond proceeds to the city of East Providence, which will use them to renovate a middle school and make “significant upgrades” to an elementary school, according to the official statement accompanying the sale of the bonds. Construction on both projects is expected to begin next year.

The planned improvements are the latest in a series of recent school upgrades in East Providence. In 2021, the city opened a new, $190 million high school. 

City officials say investment in education will reap economic dividends for East Providence. “Quality education plays an extremely important role in our ability to market East Providence as a top tier location for economic investment,” East Providence Mayor Roberto DaSilva wrote in the New England Real Estate Journal last December.

The bonds are special obligations of the corporation, payable by pledged revenue from the city of East Providence.

Janney Montgomery Scott LLC served as lead underwriter on the issuance, purchasing the bonds for $86 million. The price reflected a premium of $9 million. Acacia Financial Group, Inc acted as municipal advisor.

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