Hinsdale gets low rate in bond sale
Updated: August 27, 2012 5:23PM
Hinsdale — Benefiting from its AAA bond rating, Hinsdale got the low rate of 2.1 percent on bonds sold Aug. 14.
The village issued $5 million in general obligation (alternate revenue source) bonds that will be used to pay for work in its long-term capital projects plan, approved in December 2009.
Kevin McCanna, president of Speer Financial Inc., said there were nine bidders for the 20-year bonds, who engaged in an active online exchange.
“The bidders do not get to see the other bids, they just get to see their ranking among them,” McCanna said.
BMO Harris Bank offered the best rate, which averages 2.095 percent over the 20 years, which Village President Thomas Cauley Jr. called a fantastic rate.
“It’s almost free money,” Cauley said.
The financial rating services, Fitch Ratings and Standard & Poor’s Financial Services, maintained its AAA long-term rating for Hinsdale’s bonds, the highest ranking they give, which attracts multiple bidders and low rates.
The village will pay back the bonds with its nonhome-rule sales tax. ~.