Newburyport’s Anna Jaques Hospital will be expanding thanks to a $22.5 million tax-exempt bond from MassDevelopment.

Anna Jaques Hospital is a 123-bed community hospital that serves 17 cities and towns in the Merrimack Valley. The hospital will use bond proceeds to build a new general services building, expand an inpatient unit and renovate the ambulatory surgery suite, according to a statement.

"As a community hospital, Anna Jaques specializes in patient- and family-oriented care for the Merrimack Valley," said MassDevelopment President and CEO Robert L. Culver. "Massachusetts is fortunate to have some of the top medical institutions in the country, and we’re pleased this tax-exempt bond will help one of the commonwealth’s hospitals expand its services."

"The centerpiece of the project that this financing makes possible is a fully renovated, single occupancy, new inpatient unit," said Delia O’Connor, president, Anna Jaques Hospital. "We believe single occupancy will be the expectation of patients in the future, and Anna Jaques intends to meet that need for privacy, a peaceful healing environment and infection control."

Bond proceeds will also finance renovations to the hospital’s outpatient entrance, the purchase of capital equipment and the refinance of previous loans and bonds, according to a statement.

T.D. Bank purchased the bond.