Variable Rate Demand Bonds & Remarketing

Explore an effective financing option for tax-exempt organizations with Variable Rate Demand Bonds.

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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.

Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for details.
​All products and services are subject to eligibility and restrictions may apply.
Investment and Insurance Products: • Are NOT Deposits • Are NOT FDIC Insured • Are NOT Insured By Any Federal Government Agency • Have NO Bank Guarantee • May Lose Value​​​​​