Stamford Sells $40 Million In General Obligation Bonds

Information via city of Stamford

STAMFORD, CT — This week, Mayor Caroline Simmons announced the city of Stamford sold $40 million general obligation bonds and received a bond premium totaling $3.6 million, which will be deposited into the city’s capital reserve fund and used to pay for short-term capital needs.

Stamford received bids from eleven underwriting firms submitting a total of 32 bids, with Citigroup submitting seven individual bids, the city said in a news release. The winning bid had a True Interest Cost (TIC) of 3.18 percent from investment bank and financial services company Raymond James.

"This year’s bond refunding underscores the confidence bond holders have in our city’s fiscal management and economy," Simmons said in a news release. "This not only allows us to reinvest in our community but saves taxpayers millions of dollars. I want to thank Director of Administration Sandy Dennies and her team for their work and commitment to ensuring our city’s financial health."

The city said in a news release the winning bid was lower than all recent AAA sales including from Fairfield and Westport.

"Most sales in Connecticut generate about four or five bids; however, Stamford’s strong reputation allowed for twice as many bids compared to the average sale," the city said in a news release. "The city’s annual debt service is not projected to increase from current levels due to the aggressive amortization of existing debt service."

Earlier this month, Stamford's AAA bond rating was reaffirmed by credit rating agencies Fitch and Standard & Poor’s (S&P).

"The city’s experienced management team, robust grand list growth and financial and budgetary discipline were mentioned in the rating reports to justify the AAA bond ratings," the city said.