Municipal applicants issue bonds to the VMBB and are pooled or combined into one large bond issue which is then sold by the VMBB in the state and national municipal bond market. The proceeds of such bonds are loaned back to the participating municipalities.

We offer our eligible participants (Vermont cities, towns, villages, school districts, counties, and water, sewer, fire, transportation, solid waste, and library districts):

• Lower Interest Rates - because of our experience, credit ratings, and reputation in the capital markets, we are able to obtain very low interest rates.


• Credit Enhancement & Security - currently VMBB is rated AAA (Fitch), Aa2 (Moody's) and has been able to obtain competitive, low cost AAA-rated bond insurance, as needed, to further lower interest rates.


• Reduced Costs of Issuance - VMBB usually pays for all the costs associated with the bond issue. The only costs municipalities have to pay for are local bond counsel and a financial audit.


• Simplification - the staff at VMBB is ready to help with completing the application. If the application is approved, all a municipality then has to do is sign legal documents prepared by its local bond counsel and wait for the bond proceeds to be wire transferred after the sale and closing. The VMBB completes all the remaining documents and take care of the ongoing requirements.


• Ongoing Federal Disclosure - Federal securities law requires ongoing secondary market disclosure related to each bond issue. VMBB takes care of this SEC requirement on behalf of its borrowers. No single municipality is required to provide detailed disclosure with respect to its financial or operating information. By virtue of the VMBB providing this service, a borrower is able to avoid the ongoing fees associated with complying witht he disclosure rules.

In addition to providing municipalities access to both proceeds, Vermont Municipal Bond Bank assists the Agency of Natural Resources in the administration of the State Revolving Fund (SRF).