February 25, 2021
The City of Buffalo went to the bond market on February 18, 2021 to borrow$10.9 million to refinance debt originally issued in 2011 and 2012. The City received bids from eight (8) Underwriters with BNY Mellon Capital Markets, LLC prevailing. The competitive bidding process ended with the City receiving a low interest rate of .37%on the six-year bonds.
The City’s solid ‘A1’ Bond Rating by Moody’s Investor Services and “A+” Bond Rating by Standard & Poor’s Global, declining municipal bond rates and investors strong demand for the City’s credit resulted in outstanding interest rates for the City.
The interest rate the City received lowered interest costs and resulted in present value savings of $1.8 million to residents and taxpayers. “This was a remarkable out come for the City of Buffalo and shows that the municipal bond market has confidence in the City’s long-term finances and management,” said Comptroller Barbara Miller-Williams.