Bond Refundings Save Regents $47 Million Since 2011
In order to best serve the Regent Enterprise, Board Office staff and Springsted, Inc., the Board’s municipal advisor, review possible refundings of all outstanding bonds prior to each Board meeting. From the issuance of refunding bonds at lower interest rates, the Regent Enterprise has realized present value savings of more than $47 million since 2011.
“The Board takes its fiduciary responsibility very seriously,” said Mark Braun, Chief Operating Officer of the Board of Regents. “Being good stewards of our resources is of great benefit not only to the universities, but also to the taxpayers of Iowa.”
By reissuing bonds at lower interest rates the Board’s annual debt service obligations shrink, benefiting numerous university systems. These include, in part: Dormitories, utilities, athletics, parking and the hospitals and clinics. In addition, refunding bonds issued for academic buildings have also reduced the tuition replacement appropriation need, benefiting Iowa taxpayers.