The Vermont Bond Bank sold $66 million in bonds to fund improvements in nine municipalities across the state.
The bonds mature between 2025 and 2054, yielding between 2.56% and 4.25%. They received a rating of AA+ form S&P Global Ratings and Aa2 from Moody’s Investors Service.
The bank will loan the proceeds to local municipalities to finance a variety of infrastructure upgrades and other projects.
The rating incorporates “a sufficient default tolerance, the program’s strong governance structure including sound legal provisions, and robust management and oversight,” Moody’s analysts wrote.
The bond proceeds will fund upgrades to Vermont schools, infrastructure, and facilities. The largest disbursement, about $36 million, will finance school improvements for Fairfax Town School District, which lies less than 100 miles south of Canada.
The Vermont Bond Bank was created in 1970 to issue bonds that fund improvements in the state’s towns and counties. The bonds are general obligations of the bank, backed by its full faith and credit. The bank now has $612 million in debt outstanding, according to Moody’s.
Morgan Stanley & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $73.5 million. The price reflected a premium of more than $7.5 million. Omnicap Group LLC acted as financial advisor.