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PROVIDENCE, R.I. – Rhode Island Infrastructure Bank, the state’s central hub for financing infrastructure improvements for municipalities, businesses, and homeowners, in partnership with the Rhode Island Department of Health, has closed on a $26.2 million Drinking Water State Revolving Fund loan with $12.8 million in principal forgiveness (i.e. a grant) for Providence Water to continue their Accelerated Lead Service Line Replacement Program. This latest round of funding will support Providence Water’s ongoing efforts to remove lead service lines at no cost to property owners.

With this latest loan, the Infrastructure Bank has provided a total of $78.8 million in funding for Providence Water’s Accelerated Lead Service Line Replacement program. The Bank has been recognized nationally for its effective pace to leverage federal funds to advance lead service line replacement projects throughout Rhode Island.

“This loan represents our continued commitment to putting federal Infrastructure Investment & Jobs Act funding to work quickly and efficiently to remove lead pipes and improve public health,” said William Fazioli, Executive Director of the Rhode Island Infrastructure Bank. “We look forward to a continued partnership with Providence Water and our Congressional delegation to provide affordable funding for this needed investment in basic drinking water infrastructure.”

“Providing safe and reliable drinking water is our most fundamental responsibility at Providence Water, and ensuring our system is lead-free is a critical part of that mission,” said Ateesh Chanda, Chairman of the Providence Water Supply Board. “This new $26.2 million loan from the Rhode Island Infrastructure Bank is a major win for public health that allows us to continue replacing lead service lines for eligible customers at no cost to them. We are grateful for our long-term partnership with the Infrastructure Bank and our Congressional delegation for securing the federal funding necessary to continue our Accelerated Lead Service Line Replacement program.”

“Since the start of the Accelerated Lead Service Program in January 2024, Providence Water has successfully replaced over 4,300 lead service lines for free within our service area using a combination of federal grant, loan, and state funding,” said Ricky Caruolo, General Manager of Providence Water. “This loan from the Infrastructure Bank will allow us to continue the progress we have made eliminating lead from our customers’ taps. We want to thank the Bank for their continued partnership and our Rhode Island Congressional delegation for securing the federal dollars needed to sustain this major drinking water infrastructure program.”

“Our neighbors deserve access to safe, clean drinking water and today’s announcement ensures that the critical rehabilitation of the city’s outdated water infrastructure can continue,” said Mayor Brett P. Smiley. “At a moment when our community is facing an affordability crisis, ensuring continued access to no-cost private-side lead service line replacement is essential for the health and wellbeing of our neighborhoods. I’m thankful to our entire federal delegation and the Infrastructure Bank for their dedication to improving the quality-of-life of our city.”

“When Rhode islanders turn on the tap, their drinking water should be clean, safe, and lead-free.  Replacing old pipes will improve the health and well-being of Rhode Islanders across the state.  Despite the Trump Administration trying to eliminate federal funding for lead pipe replacement, this is a smart investment in improving water quality, protecting residents, and removing toxic lead water pipes that contaminate our drinking water,” said U.S. Senator Jack Reed.

“Clean, lead-free drinking water is a cornerstone of public health, particularly for children,” said Senator Whitehouse, ranking member of the Senate Environment and Public Works Committee. “Our Bipartisan Infrastructure Law is supporting these long-overdue pipe replacements that won’t cost Rhode Island families a penny.”

“Every Rhode Islander deserves clean, safe drinking water when they turn on the tap,” said Congressman Seth Magaziner. “I was proud to help expand the Rhode Island Infrastructure Bank when I was State Treasurer to make investments like this possible, and it is great to see that work continuing to deliver results. This new funding will help remove lead pipes, deliver reliable drinking water, and lower costs for Rhode Islanders.”

“The science is clear: no amount of lead in our drinking water is safe,” said Congressman Gabe Amo. “This federal investment from the Infrastructure Investment and Jobs Act will help replace dangerous lead pipes in our communities and ensure Rhode Islanders have access to clean, safe water. I’m grateful for the work of the Rhode Island Infrastructure Bank, state, and municipal leaders, and I will continue working with our federal delegation to secure funding for water infrastructure projects.”

“Public water systems take many steps to keep drinking water safe from lead, including treatment that reduces corrosion and routine testing. However, collaborations like this to replace lead service lines are a critical additional step in our work to make Rhode Island’s drinking water as healthy and safe as possible,” said Director of Health Jerry Larkin, MD. “We are thankful to everyone at the local, city, state, and federal levels who are coming together to move this work forward for Providence.”

Thanks to the Infrastructure Bank’s favorable lending terms, which include a 0% interest rate, Providence Water realized more than $22 million in debt service savings on this loan.

PROVIDENCE, R.I. – Rhode Island Infrastructure Bank, the state’s central hub for financing infrastructure improvements for municipalities, businesses, and homeowners, has successfully closed on a $184,495,000 bond issuance to finance critical infrastructure investments in clean water (Narragansett Bay Commission, $75 million) and drinking water (Kent County Water Authority, $25 million) projects. The bond received AAA credit ratings from both S&P Global Ratings and Fitch Ratings, reflecting strong investor confidence and the Bank’s prudent financial management.

“This $184 million bond issue represents a major investment in the health of our environment and the safety of our drinking water,” said William Fazioli, Executive Director of the Rhode Island Infrastructure Bank. “By providing low-cost financing for the Narragansett Bay Commission’s historic CSO project and supporting Kent County Water Authority’s efforts to tackle emerging contaminants, we are continuing to put capital to work for the benefit of Rhode Islanders. These projects are a testament to the power of utilizing the Clean Water and Drinking Water State Revolving Funds to meet the state’s most pressing infrastructure needs.”

The bond issue also includes significant affordability components made possible via federal funding, including more than $8.8 million in principal forgiveness for the Narragansett Bay Commission and $7.5 million for the Kent County Water Authority, helping to directly reduce costs for local ratepayers.

“Our ability to secure AAA ratings allows the Infrastructure Bank to access the capital markets at the lowest possible cost,” said Vahid Ownjazayeri, Rhode Island Infrastructure Bank Board Chair. “By utilizing the Bank’s capital and below-market rate financing, our partners are realizing significant savings compared to traditional financing options.”

The transaction also includes a bond refinancing of existing debt that is expected to generate over $2.7 million in savings, further strengthening the long-term financial position of the Bank’s lending capacity.

Narragansett Bay Commission CSO Phase III – $75 Million
Approximately $75 million in bond proceeds will primarily support the Narragansett Bay Commission’s Combined Sewer Overflow (CSO) Project Phase III. This major initiative is aimed at improving water quality and protecting the health of Narragansett Bay by reducing overflow volumes by 98%. As a result of the Bank’s subsidy, the interest rate on this 30-year loan is an attractive 3.15%.

“The Rhode Island Infrastructure Bank has been a vital partner in the CSO project for over two decades,” said Kevin McDonald, Chief Financial Officer of the Narragansett Bay Commission. “This latest round of $75 million in financing, combined with nearly $9 million in principal forgiveness, is crucial as we move forward with CSO Phase III construction. These savings allow us to continue this historic environmental work while remaining mindful of the financial impact on our customers.”

**Kent County Water Authority PFAS Remediation – $25 Million
**In addition to clean water efforts, the financing will fund a PFAS remediation project at the Kent County Water Authority, advancing efforts to address emerging contaminants and ensure safe drinking water for residents. The interest rate on this 20-year loan is a very favorable 2.79%.

“Ensuring the long-term safety of our drinking water supply requires proactive investment in new technologies to address emerging contaminants like PFAS,” said David Simmons, Executive Director / Chief Engineer of the Kent County Water Authority. “The Infrastructure Bank’s low-cost financing and $7.5 million in principal forgiveness make it possible for us to implement this critical remediation project efficiently and affordably for our customers.”

The financing team that assisted the Bank on this transaction included Jeffries as Senior Managing Underwriter along with Raymond James, Siebert Williams, Stern Brothers, Bank of America Securities, and Academy Securities as co-managers. The Bank was represented by Hinckley Allen as Bond Counsel, Harrington Vitale Bernardo as General Counsel and Hilltop Securities as municipal advisor.

PROVIDENCE, R.I. – Rhode Island Infrastructure Bank today announced that leading rating agencies Fitch and S&P have given AAA, stable outlook credit ratings to the Bank’s Clean Water State Revolving Fund and Drinking Water State Revolving Fund programs.

Both agencies point out several underlying factors which contribute to these top tier credit ratings including;

• Secure Market Position
• Robust over collateralization
• Strong Financial Policies and Procedures
• Extremely strong risk profile

“This is a tremendous vote of confidence despite uncertainties around federal funding,” said Executive Director William Fazioli. “These AAA ratings demonstrate that the Infrastructure Bank is highly creditworthy and a responsible steward in managing public funds to improve critical clean and drinking water infrastructure, while providing the most affordable financing terms for our city, town, and quasi-public clients. They also demonstrate that during a time of uncertainty, the Bank stands for stability and resilience as a source of low-cost financing for infrastructure projects across Rhode Island.”

The ratings were assigned in connection with an upcoming bond sale to fund projects at the Narragansett Bay Commission and Kent County Water Authority.