With help from the Federal Home Loan Bank of Boston, Waterbury’s Webster Bank has provided more than $20 million in financing for a New Britain specialized care hospital to help fund a new facility and refinance existing debt.

Webster is providing approximately $20.2 million in financing for the Hospital for Special Care to fund its new neurobehavioral building on its New Britain campus. In the transaction, Webster provided the letter of credit to support a $20.2 million bond issuance by the Connecticut Health and Educational Facilities Authority (CHEFA), the proceeds of which were loaned to the hospital. The hospital used the funds to refinance existing CHEFA debt as well as construction debt for the neurobehavioral building, which began to house patients last week, according to a statement.

The letter of credit was confirmed by the Federal Home Loan Bank of Boston (FHLBB), the first CHEFA issue to benefit from an FHLBB wrap, resulting in an AAA rating for the bond issue, the bank said. This was also the first Webster letter of credit in support of a CHEFA issue and the bank’s first use of FHLBB in this capacity. CHEFA is a quasi-public agency that provides Connecticut’s nonprofit health care and educational institutions access to low cost financing in the public municipal markets.