Variable Rate Demand Bonds & Remarketing
Explore an effective financing option for tax-exempt organizations with Variable Rate Demand Bonds.
Variable Rate Financing Structure
Variable Rate Demand Bonds (VRDBs) are an effective financing tool that allows borrowers to access short-term interest rates. The variable interest is adjusted periodically (typically each week), which provides the borrower with a low-cost interest rate based on the credit enhancement provider.
Liquidity for Tax-Exempt Borrowers
M&T Bank provides credit enhancement, in the form of letters of credit, to borrowers that are qualified to issue tax-exempt debt under the Tax Code. Types of borrowers include acute care and long term care providers; colleges, universities and secondary private schools; affordable housing and municipalities.
At M&T, we rely on a strong capital base to support our remarketing program and have a diverse base of institutional investors who have demonstrated consistent demand and have allowed us to remarket our portfolio at comparably strong levels.
Experience You Can Trust
M&T has been an active underwriter and remarketing agent for a portfolio of Variable Rate Demand Bonds (VRDBs) for more than twenty years.