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NEWS from the Office of the New York State Comptroller
Contact: Press Office 518-474-4015

        

DiNapoli Announces Sale of $540 Million State of New York General Obligation Bonds

March 20, 2025

State Comptroller Thomas P. DiNapoli announced the sale of New York State General Obligation (GO) Bonds totaling $539.6 million through competitive sale. Despite recent market volatility, strong investor interest in the state’s full-faith-and credit GO bonds resulted in favorable interest rates and produced savings for state taxpayers.

Specifically, three series of bonds were sold consisting of $365,255,000 of Series 2025A Tax-Exempt Bonds, $8,485,000 of Series 2025B Taxable Bonds and $165,845,000 of Series 2025C Tax-Exempt Bonds.

The net proceeds from the sale will finance projects authorized by voter-approved bond acts and refund certain bonds to reduce debt service costs. The refunding saves New York taxpayers a total of $4.4 million over the life of the bonds, or $3.6 million on a net present value basis. The refunding will also mitigate the risks from federal proposals to eliminate the subsidy on Build America Bonds, increasing the total savings to $19.2 million, or $16.4 million on a net present value basis. The bonds are scheduled to be delivered on March 26, 2025.

“These bonds, all of which have been approved by the voters, will pay for essential investments in transportation, education and environmental projects,” DiNapoli said. “The state’s GO credit continues to have significant investor interest thanks to the safety and rarity of the credit, translating into favorable pricing and refunding savings.”

The winning bids were as follows:

  • Series 2025A Tax-Exempt Bonds to Jefferies LLC with a true interest cost bid of 3.650%.
  • Series 2025B Taxable Bonds to Wells Fargo Bank, National Association with a true interest cost bid of 4.255%.
  • Series 2025C Tax-Exempt Bonds to Jefferies LLC with a true interest cost bid of 2.730%.

The state received 7 bids for the $365.3 million of Series 2025A Tax-Exempt Bonds. The net proceeds will finance projects authorized by the following bond acts: Pure Waters (1965), Environmental Quality (1972), Environmental Quality (1986), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005), Smart Schools (2014), and Clean Water, Clean Air, and Green Jobs (2022), and will refund $30.4 million of outstanding New York State General Obligation Bonds. The Series 2025A Tax-Exempt Bonds will mature over nineteen years.

The state received a total of 8 bids for the $8.5 million of Series 2025B Taxable Bonds. The net proceeds will finance projects authorized by the following bond acts: Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005), and Smart Schools (2014). The Series 2025B Taxable Bonds will mature over one year.

The state received a total of 9 bids for the $165.8 million of Series 2025C Tax-Exempt Bonds. The net proceeds will refund $181.8 million of outstanding New York State General Obligation Bonds. The Series 2025C Tax-Exempt Bonds will mature over ten years.

A summary of bids received for each series can be viewed here: https://osc.ny.gov/press/docs/bond-sale-summary-2025.

The Series 2025A Tax-Exempt Bonds, the Series 2025B Taxable Bonds, and Series 2025C Tax-Exempt Bonds are rated AA+ by S&P Global Ratings, Aa1 by Moody’s Ratings and AA+ by Fitch Ratings.