Vermont Municipal Bond Bank (VMBB) is an instrumentality of the State of Vermont, administered by a board of directors that includes the State Treasurer and four members appointed by the Governor.

The VMBB was established in 1970 with a mandate to provide municipalities with access to capital markets at the lowest possible cost. To date the VMBB has issued over $1.1 billion in tax-exempt bonds for over 700 projects and refunding.

Municipal applicants sell their bonds to the VMBB. The Bond Bank pools or combines the municipal bonds into one large bond issue which is then sold by the VMBB in the public municipal bond market. The proceeds of these 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
• Credit Enhancement & Security
• Reduced Costs of Issuance
• Simplification
• Ongoing Federal Disclosure

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

Yield Curve

Source: U.S. Treasury & the "Bond Buyer MMD Rates"

Municipal bond rates are based on national markets. Rates often change on a daily basis. This graph does not represent current bond rates. Click here to view yield curve.

Low Cost Bonds
Low interest, tax exempt, taxable, and tax credit bonds for eligible municipal projects. These include:

• General obligation or Non-revenue bonds
• Revenue bonds
• Tax Credit Bonds

State Revolving Fund
VMBB jointly administers the State Revolving Fund (SRF) with the Agency of Natural Resources. Eligible projects include the planning and construction of water supply and wastewater systems.