PROVIDENCE, R.I. – Rhode Island Infrastructure Bank, the state’s central hub for financing infrastructure improvements for municipalities, businesses, and homeowners, has closed on $100,000,000 in Clean Water State Revolving Fund bond financing, with $7,069,000 in principal forgiveness stemming from the Infrastructure Investment and Jobs Act. Bond proceeds will help finance the ongoing construction of the Narragansett Bay Commission’s Combined Sewer Overflow (CSO) Phase III project and other system infrastructure upgrades.
The $100 million in total financing comes via a Series A $75 million in open market bonds and a Series B $25 million direct loan. The term for both is 30 years at an interest rate of 3.14%. The Series A bonds were rated AAA by S&P and Fitch.
“Rhode Island Infrastructure Bank has been providing low-cost financing for the Narragansett Bay Commission’s CSO project for over two decades, and we’re pleased to continue that partnership with this $100 million bond to support Phase III construction and other system upgrades,” said William Fazioli, Executive Director. “The CSO is among the largest infrastructure projects in Rhode Island’s history and has helped to dramatically improve the health of Narragansett Bay. This is a true demonstration of the importance of investing in infrastructure and utilizing Rhode Island’s Clean Water State Revolving Fund and federal resources from the Infrastructure Investment and Jobs Act.”
“The Rhode Island Infrastructure Bank’s low-cost financing has been crucial for our CSO project,” said Laurie Horridge, Executive Director of the Narragansett Bay Commission. “We are grateful for their decades-long partnership and this latest $100 million Clean Water State Revolving Fund financing, which will support our ongoing CSO Phase III construction and other needed upgrades across our system.”
“Working with my colleagues in the delegation, we were able to deliver historic levels of federal investments for our state’s roads, bridges, and clean water infrastructure through President Biden’s Bipartisan Infrastructure Law. Thanks to this federal support, Rhode Island is advancing historic projects, like the CSO, to better protect our environment and boost economic development,” said Senator Jack Reed, a member of the Senate Appropriations Committee. “I was proud to help support phase three of this important project to continue improving the health of Narragansett Bay and significantly enhance stormwater management across the state.”
“The Narragansett Bay Commission’s CSO project is a generational investment in the health of our Bay that is already paying dividends for Rhode Islanders,” said Senator Sheldon Whitehouse. “As Ranking Member of the Senate Environment and Public Works Committee, I’ll continue fighting to protect the Clean Water State Revolving Fund and other programs that allow the Rhode Island Infrastructure Bank to make these kinds of projects possible.”
This funding will make the Narragansett Bay cleaner and sewer bills more affordable for thousands of Rhode Islanders,” said Representative Seth Magaziner. “I am proud to work with my colleagues in Rhode Island’s Congressional Delegation to deliver funding to support this project so that generations of Rhode Islanders can continue to enjoy a healthier Narragansett Bay.”
“Thanks to the Infrastructure Investment and Jobs Act, we’re protecting Rhode Island’s waterways,” said Representative Gabe Amo. “This federal funding will dramatically improve our environment—preventing sewage from seeping into Narragansett Bay — and ensure the Bay remains clean for commerce and recreation for every Rhode Islander to enjoy.”
“Utilizing the Infrastructure Bank’s capital and below market rate financing on this issue, Narragansett Bay Commission was able to realize significant savings while borrowing at 3.14% interest rate, which is well below traditional financing options,” said Bank Board Chair Vahid Ownjazayeri. “Including this bond, Rhode Island Infrastructure Bank has provided approximately $1 billion in Clean Water State Revolving Fund financing for Narragansett Bay Commission clean water infrastructure investments. This long-term partnership is improving public health and the health of Rhode Island’s environment.”
Since 2003, the Narragansett Bay Commission has used the Bank’s low-cost Clean Water State Revolving Fund program to complete Phase I and Phase II of the CSO project, diverting more than 1 billion gallons of combined water and wastewater that would have otherwise gone straight into Narragansett Bay, and is now treated at their Field’s Point Wastewater Treatment Facility each year. The project has helped to dramatically improve the health of Narragansett Bay.
Phase III of the Combined Sewer Overflow project, currently under construction, is a 2.2-mile long, 30-foot diameter tunnel running underneath Pawtucket and Central Falls that is expected to reduce overflow volumes by 98 percent and treat stormwater before it flows into Narragansett Bay.
The financing team that led this highly successful transaction included RBC Capital Markets as Senior Managing Underwriter, Hilltop Securities as Financial Advisor, and Hinckely Allen as Bond Counsel.
