April 27, 2021
The City of Buffalo went to the bond market on Thursday, April 16, 2020 to borrow $63.2 million to finance 2020 Bond Anticipation Note (BAN) and 2021 capital projects. Comptroller Barbara Miller-Williams announced the City closed on the lending today and received a favorable interest rate of 0.83% on eleven-year Bonds. The yearly transaction permanently financed the BANs at a lower rate than originally issued in 2020, saving the City on interest payments. The earnings from the Bonds will provide funding for important capital projects throughout the City, such as improvements to parks, buildings, cultural organizations, streets and sidewalks.
“The City’s current long-term bond ratings (‘A1’ and “A+”), issued by Moody’s Investors Service and S&P Global and a strong market demand resulted in an outstanding interest rate for the City during these unpredictable market conditions mainly due to the ongoing global pandemic” stated Comptroller Barbara Miller-Williams. “Citigroup Global Markets Inc. prevailed among the twelve underwriters bidding for the Bonds at a rate of 0.83% on the eleven-year Bonds.”
“This was an extraordinary outcome for the City of Buffalo and display that the municipal bond market has confidence in the City’s long-term finances and management,” said Comptroller Barbara Miller-Williams.