Revived Detroit Draws Enough Bidders to Sell Debt at Lower Cost

Detroit, a once-bankrupt city now bearing its first investment-grade ratings in 15 years, showcased a continuing turnaround by selling $46 million of bonds on Tuesday at an interest cost driven lower by demand and competitive bidding.

The yield spread on the debt was a full percentage point below what Detroit — which has doubled its tax base in the past five years — paid just a year ago, and the city calculates its comparable savings at $4 million. Moody’s Ratings assigned the offering a Baa2 rating, noting that growth will be bolstered by ongoing development and the appreciation of ...