New Canaan takes $7M bond for capital projects at 1.98% interest
Recently affirmed of its Aaa-rated financial strength and coupled with strong market demand for high-quality municipal debt and historically low interest rates, the Town of New Canaan issued $7.1 million in General Obligation Bonds on April 12 at an interest cost of 1.98 percent, the lowest borrowing rate of its total $128.5 million outstanding debt issuance.
As authorized by the Town of New Canaan's Board of Finance and Town Council resolutions, the proceeds from the bonds will be used to finance capital projects including annual road paving and maintenance and continuance of infrastructure initiatives including bridge replacement, school building energy efficiency and repairs of town buildings.
"The excellent financial stewardship and the long history of prioritizing capital projects made this debt offering very attractive and allowed for such a low rate to be realized," First Selectman Rob Mallozzi said. "We should all feel extremely proud of the respect and esteem of the Town of New Canaan holds in the financial community."
In its recent ratings review, Moody's Investors Service stated that New Canaan's "Aaa rating reflects the town's large affluent tax base, sound financial operations with healthy reserve levels and manageable debt position."
UBS Finance Services led the syndicate providing the winning bid for the bond issue. Independent Bond & Investment Consultants, LLC, served as the town's financial adviser and Robinson & Cole LLP represented the Town as bond counsel.
Looking ahead, Mallozzi noted the benefits of the successful bond offering.
"These funds will enable us to continue the investment in our existing infrastructure that we all believe is so important to the vitality of our community," he said.