News Story

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.