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Posted on: April 24, 2020

City of Buffalo Receives Favorable Interest Rate on $34.8 Million Borrowing for Capital Projects

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Buffalo Comptroller Barbara Miller-Williams has announced that the City of Buffalo went to the bond market on Thursday, April 16, 2020 to borrow $34.8 million in bond anticipation notes (BAN), receiving a rate of 0.92% on the one-year notes. The routine annual transaction redeemed BANs, originally issued in 2019 at a higher interest rate, saving the city on debt service payments. This bond sale will also provide new funding for important city capital projects such as citywide infrastructure improvements, technology upgrades and much needed roadway improvements.

 “The city’s strong bond note ratings, ‘MIG 1’ by Moody’s Investors Service and ‘SP-1+’ by S&P Global, their highest short-term ratings, resulted in an outstanding interest rate for the city during these volatile market conditions caused by the ongoing global pandemic” stated Comptroller Barbara Miller-Williams. “Bank of America Merrill Lynch prevailed among the five underwriters bidding for the notes at a rate of 0.92% on the one-year notes.”

The Comptroller would also like to remind the residents of Buffalo “that during these trying times and during this National Health Emergency, my office and the Department of Audit and Control will continue to protect, report and strengthen the city’s finances to help ensure an efficient, effective and transparent government that will serve all the citizens and taxpayers of Buffalo.”

 

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