The Vermont Bond Bank sold $48.5 million in bonds to finance loans to 11 local governmental units in the state.
The bonds mature between 2025 and 2054, yielding between 2.8% and 4.175%. They received a rating of Aa2 from Moody’s Investors Service and AA+ from S&P Global Ratings.
“The rating reflects our view of the bond bank’s very strong enterprise risk profile,” S&P analyst Autumn Mascio said in a press release.
The bond bank will loan the plurality of the proceeds, some $20.8 million, to Hartford Town School District. It will lend an additional $1.3 million to the town of Hartford, a municipality on the New Hampshire border with a population of around 10,000 people.
Lending to school districts will take up two-third of the bond proceeds. The remainder will go directly to Vermont towns and cities for various purposes.
The Vermont legislature created the bond bank in 1969, making it the first such bank in the United States. It buys bonds from municipalities in the state to finance infrastructure projects. The bank currently has 488 loans outstanding, totaling $532 million in financing, according to its website.
The bonds are general obligations of the bond bank, secured by the municipal bonds it purchases.
BofA Securities, Inc served as underwriter on the issuance. Omnicap Group LLC acted as financial advisor.