News
Public Finance Wrap-Up: May 2020
Financings in May
After over a month without a City General Obligation bond or New York City Transitional Finance Authority (“TFA”) bond sale, the TFA entered the market with its Future Tax Secured Bonds with a retail order period on May 12th followed by the institutional pricing on May 13th. TFA sold approximately $1.08 billion of Future Tax Secured Subordinate Bonds, comprised of $850 million of tax-exempt fixed rate bonds and $226 million of taxable fixed rate bonds. The financing drew strong interest from both retail and institutional investors, with over $500 million of retail orders and an oversubscription of 11x the bonds offered for sale during the institutional order period, and resulting in a reduction of three to fifteen basis points across various maturities. Proceeds from the bond sale will be used to fund City capital projects. To learn more, read the Press Release.
Upcoming Financings
The New York City Municipal Water Finance Authority (NYCMWFA) plans to offer approximately $635 million tax-exempt, fixed rate bonds in June. Proceeds from the bond sale will be used to fund capital projects and refund certain outstanding bonds for savings. Subject to market conditions, the institutional pricing will take place on Tuesday, June 2, 2020. Individual investors will have priority in placing orders during the retail order period on Monday, June 1, 2020. Learn more about this transaction here.
City Economic Updates
In these uncertain times, the Comptroller’s Office’s Budget Bureau has been publishing periodic fiscal and economic updates for New York City which may be of interest to our readers. Visit New York by the Numbers – Weekly Economic and Fiscal Outlook for more information.
Fort Tyron Park, Hudson Height
Looking Ahead
As we await adoption of the City’s Fiscal Year 2021 Budget in June, we will continue to actively monitor markets and the various federal actions taken to stabilize the economy. Together, the Comptroller’s Office and the Mayor’s Office of Management and Budget continue to work to ensure that the City’s financing programs provide adequate capital funding.
We remain proud of our citizens and the kindness and camaraderie displayed during these times, knowing that on the other side of this, we will all be as resilient and strong as ever.
Marj Henning
Deputy Comptroller for Public Finance