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Home > Leadership > City Comptroller > Press Releases > Schroeder gets low rates on $33 million in capital borrowing

Bond sale

Schroeder gets low rates on $33 million in capital borrowing

18 different bidders competed on combination of long-term bonds, short-term notes

Buffalo Comptroller Mark J.F. Schroeder went to the bond market today to borrow $33 million to fund the city’s capital projects, receiving a rate of 1.88 percent on $25.6 million in long-term bonds and 0.29 percent on $7.4 million in short term-notes.

“Buffalo’s rising bond ratings, as well as favorable market conditions have resulted in outstanding interest rates for the city,” said Schroeder.  “Volatility in the stock market and geopolitical events have sent investors towards the safety of municipal bonds.  We had 18 different bidders competing to give Buffalo taxpayers the best deal possible.”

Guggenheim Securities prevailed among the thirteen underwriters bidding for the $25.6 million in bonds, which fully mature in nine years.  Four of those bidders, in addition to five other underwriters, made up the nine firms vying for the $7.4 million in bond anticipation notes, with Raymond James offering the best rate on the one-year notes.

“We had twice as many bidders as we usually have on these types of debt issuances,” said Schroeder.  “Many of those underwriters have never bid on a bond from Buffalo before today.”
Standard & Poor’s upgraded the city’s bond rating to “A+” in its rating report last month, citing recent economic development and “strong financial management.”  Moody’s, which upgraded Buffalo to “A1” two years ago, affirmed that rating in March.  Fitch also affirmed its “A+” rating a month ago.

“Buffalo’s improving bond ratings have led to better interest rates, which means lower interest costs for taxpayers,” said Schroeder.

The $33 million in funding will be spent on capital projects such as street repairs, demolitions, park improvements, the polar bear exhibit at the Buffalo Zoo, upgrades at Coca-Cola Field, and renovations to the Hatch Restaurant at the Erie Basin Marina.  It also includes funding for more than $1 million worth of new police vehicles.