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Virginia Pooled Financing Program (VPFP) - Spring 2020
Virginia Pooled Financing Program (VPFP) - Spring 2020
Despite challenging market conditions since the onset of the COVID-19 crisis, VRA successfully managed the VPFP Series 2020A spring pooled issuance on behalf of local government borrowers. VRA priced the bonds on May 20th and closed on June 3rd.

These loans will help local governing bodies meet their needs in three project areas on which VRA focuses: public safety, wastewater and local government buildings. Here is a list of the projects financed:

  • Southwest Virginia Regional Jail Authority - refinancing for savings;
  • Western Virginia Water Authority - electrical upgrades to a wastewater treatment plant; expansion of a sewer collection system;
  • York County - refinancing for savings; and
  • York County - sewer Supervisory Control and Data Acquisition ("SCADA") system replacement; fire truck replacement; Yorktown Library expansion and renovation; architecture and engineering services for a planned law enforcement building; and replacement of the Dockmaster Office and public restrooms at Yorktown Beach

In addition to helping these entities serve their constituents, the VPFP bonds also will help them save money that can be available to meet other needs. The bonds generated $5,115,690 in net present value refunding savings. These savings included $2,170,594 (6.67% of refunded principal) for Southwest Virginia Regional Jail Authority and $2,945,096 (22.65% of refunded principal) for York County.

The VPFP Series 2020A bonds have a total par amount of $55,320,000, a true interest cost of 2.39%, an all-in true interest cost of 2.62% (both including tax-exempt and taxable bonds) and a final maturity date of November 1, 2042.

VRA's VPFP ratings were confirmed by Moody's and Standard & Poor's as of April 30th. Moody's confirmed the 'Aaa / stable' rating associated with the VPFP Series 2020A Infrastructure Revenue Bonds and the 'Aa1 / stable' rating associated with the VPFP Series 2020A State Moral Obligation Revenue Bonds. Similarly, Standard & Poor's confirmed the 'AAA / stable' rating associated with the VPFP Series 2020A Infrastructure Revenue Bonds and the 'AA / stable' rating associated with the VPFP Series 2020A State Moral Obligation Revenue Bonds.

During periods of uncertainty in the financial markets, VRA seeks to provide continued access to local governments to meet their infrastructure needs and is pleased with the results acheived during the Spring VPFP issuance.

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