Pooled Bond Program

Our primary goal is to lower financing costs for your locality. To do this, we have found ways to reduce costs of issuance and offer very low competitive interest rates.

Reducing Costs of Issuance
Issuance costs run the gamut from financial advisory fees to attorney's fees, to printing and trustee costs. To cut these costs significantly, we offer:

1. Shared fixed costs across a group of borrowers
   Because we are issuing bonds on a pooled basis, all fixed costs are shared by the entire group. These costs are often the same regardless of the size of the bond issue, and include many boiler-plate documents and repetitive tasks.
   
   
2. Negotiated long-term and volume discounted preferred pricing of contracts
   Because of our size and volume, the VML/VACo Finance Program is able to enjoy favorable cost structures on bond ratings, printing, and financial advisory, legal, trustee, and investment services.

Obtaining The Best Interest Rate
We have developed a simple three step strategy in order for our bonds to achieve some of the lowest interest rates in the market.

1. Issue AAA insured bonds
   Municipal bonds are priced according to their published bond ratings. Our bonds are insured in order to receive a AAA rating. What’s more, we pass our savings in bond insurance back to you – the stronger your credit pledge, the more you save.
   
   
2. Obtain the best market pricing
   Our program has used both competitive and negotiated pricing in recent bond sales. Competitive benchmarks ensure attractive interest rates in both pricing methods.
   
   
3. Generate excitement among investors
   The VML/VACo Finance Program is flexible enough to benefit large and small localities, including both highly rated and nonrated borrowers. With two bond pools issued each year by a broad array of localities, investors will be attracted by this opportunity to invest in Virginia local governments. The more excitement about the quality and size of the issue, the better your interest rates.