RI General Obligation Bond Sale a Success: Orders Exceeded $589 Million

Providence, RI – Today, Rhode Island General Treasurer James A. Diossa applauded the successful negotiated sale of $273,250,000 of General Obligation Bonds this past week, including $196,260,000 of Series A tax-exempt new money bonds, $27,605,000 of Series B taxable new money bonds, and $49,385,000 of Series C tax-exempt refunding bonds. The refund resulted in present value savings of $1.4 million. During the order period, the State received orders for the bonds totaling over $589 million, representing 2.2x the bonds offered. The orders included over $348 million from individual and professional retail investors. Rhode Island retail investors accounted for $36.7 million in orders, a record for the Ocean State.

Given the investor demand, the yields on the bonds were reduced by up to 7 basis points, which resulted in additional savings for Rhode Island taxpayers over the initial pricing. The final all-in true interest cost for the bonds was 4.23%, 0.22% lower than the previous sale of State General Obligation Bonds in October 2023. The bonds will help support a range of key capital projects including school building construction, economic development, and environmental needs. The underwriting team was led by J.P. Morgan and Cabrara Capital Markets LLC. 

“From housing and clean energy to infrastructure and community investment, Rhode Island continues to be a smart and reliable destination for capital through GO bonds," said General Treasurer James Diossa. “Together we are working to build Rhode Island's future. As Treasurer, I’m dedicated to building public trust in our bonds, which have consistently delivered safe, stable, and long-term financial returns.”



“This successful bond sale is another sign of confidence in Rhode Island’s fiscal strength,” said Governor Dan McKee. “We’re securing critical funding for school construction, higher education and economic development while delivering savings for taxpayers. Combined with our recent rating upgrade, it’s clear that Rhode Island is moving in the right direction.”

Just two weeks ago, Fitch Ratings upgraded the State’s general obligation rating to AA+ from AA, while Moody’s Investors Service and S&P Global Ratings affirmed the State’s Aa2 and AA ratings, respectively. All three rating agencies gave Rhode Island a Stable Outlook.