Westport  awarded its $12.5 million general obligation bond sale to PNC Capital Markets at a special meeting of the Board of Selectmen held June 25. 

The bonds, maturing from 2010 to 2029, sold at an average interest rate of 3.56 percent, said First Selectman Gordon F. Joseloff. 

“This is the most favorable rate on Westport debt in four decades,” he said. “We are extremely gratified by the auction results.” 

Proceeds from the bond sale will finance various school, sewer and municipal improvements.

Moody’s Investor Service on Wednesday affirmed Westport’s triple-A rating on the issue and also affirmed the Aaa rating on the town’s parity debt.

“The highest quality long-term rating reflects the town’s sizable tax base, high wealth indices and modest debt levels,” Moody’s said.  “The Aaa rating also incorporates the town’s well managed financial operations marked by satisfactory levels of reserves, a well funded pension system, and proactive funding of the town’s post retirement benefits liability.”

Joseloff said the success of the debt offering was due to the hard work of Finance Director John Kondub and his staff as well as other town employees, elected representatives, and the public.

“We can all be very proud of what has been achieved,” he said. “Keeping borrowing costs low for Westport taxpayers is especially welcome in these difficult economic times.”

PNC Capital Markets is the marketing name for investment banking activities conducted by Pittsburgh-based PNC Bank Corp. through its subsidiaries, PNC Bank, N.A., and PNC Capital Markets, Inc.