NYC Bonds

News

The City of New York Announces Successful Sale of $965 Million of General Obligation Bonds, Including $700 Million of Social Bonds

October 5, 2023

The City of New York (“the City”) announced the successful sale of $965 million of taxable fixed-rate General Obligation bonds, including $700 million of Social Bonds that will help support affordable housing. The sale also included $265 million of bonds that will fund general capital projects.

This transaction represents the City’s second sale of Social Bonds. Net proceeds from these bonds will be used to reimburse prior City spending on affordable housing projects, supporting the construction of nearly 4,500 units under the New York City Department of Housing Preservation and Development’s (HPD) Extremely Low- and Low-Income Affordability (ELLA) program, Supportive Housing Loan Program (SHLP), and Senior Affordable Rental Apartments (SARA) program. As part of the offering, the City received a second party opinion from S&P Global Ratings affirming alignment with the International Capital Markets Association’s Social Bond Principles.

During the order period, the City received indications of interest (IOI) for the Social Bonds totaling $1.57 billion, representing 2.2x the bonds offered. Given the investor demand, the yield was reduced by 4 basis points from the IOI to final pricing for a final yield of 5.828%.

Final yields for the bonds funding general capital projects ranged from 5.269% to 5.975%.

The bonds were underwritten through a syndicate led by book-running senior manager Barclays and joint senior managers Citigroup and Morgan Stanley, with BofA Securities, J.P. Morgan, Jefferies, Loop Capital Markets, Ramirez & Co., Raymond James, RBC Capital Markets, Siebert Williams Shank, UBS, and Wells Fargo Securities serving as co-managers.

###

Notice and Disclaimer

Under no circumstances shall the information on this website constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers to purchase securities may be made only through a registered broker-dealer and through an official statement.

The information contained on this website has been included for general informational purposes only and no person should make any investment decision in reliance upon the information contained herein.

Bonds may not be sold, nor may an offer to buy be accepted, prior to the time an Official Statement is delivered in final form. A definitive Official Statement with respect to any bonds will be made available concurrently with their sale. A Preliminary Official Statement for any bonds may be obtained from the firms listed on the cover of the Preliminary Official Statement and on this website.

Any Preliminary Official Statement relating to bonds included on the Upcoming Transactions page is provided only as a matter of convenience.

For investment advice on bonds, please contact your investment advisor.

No statement found on this website is incorporated by reference in any Official Statement for the bonds and no statement on this website is part of any Official Statement.

By choosing to continue and view the information on this website you are acknowledging that you have read and understood and accept the terms of this Notice and Disclaimer.

$242 billion
Aug
2022