For Immediate Release
February 28, 2013
For More Information Contact:
Mayor's Press Office
Mayor Thomas M. Menino today announced the City has sold $169.2 million of general obligation bonds via competitive sale. Nine different firms bid on the series.
The new money bonds were purchased by Bank of America at a true interest cost (TIC) of 2.3% to fund $145 million of capital needs. Projects being funded include the Dudley Municipal Center, major HVAC and fire safety improvement at Charlestown High School and other school projects, pool improvements, fire apparatus, and roadway reconstruction.
“Boston remains one of the strongest municipalities in the country thanks to our proven fiscal management,” Mayor Menino said. “This latest investment in our public assets takes advantage of extremely low interest rates and makes it more affordable to support the projects that improve our neighborhoods.”
The City also refunded more than $24 million in outstanding debt, saving close to $2 million on a net present value basis. The bonds were purchased by Bank of America at a true interest cost (TIC) of 2.1%.
Boston’s strong bond rating was affirmed by both Moody’s (Aaa) and Standard & Poor’s (AA+), reflecting the City’s strong financial position and its substantial and economically diverse tax base.
Moody’s has rated the City of Boston triple A since 2010.