NYC Bonds

City Social Bond Sale Wins Deal of the Year

Environmental Finance awarded “Social Bond of the Year – U.S. Muni” to the City of New York for its October 2022 Social Bond transaction. According to Environmental Finance, its Bond Awards “recognise those that excel, innovate and contribute to the successful development of the market.”

The affordable housing projects supported by the City’s Social Bonds include a total of 3,276 units across 16 projects in Brooklyn, the Bronx, Manhattan, and Queens, with 72% of the units serving households earning at or below 60% of Area Median Income and over 27% of the units serving those who were formerly experiencing homelessness.

One Bond Awards judge called the bond an “important issuance to address an urgent need in NYC”.

“The success of our first-ever social bond issuance showed strong investor interest in investments that help the City of New York create genuinely affordable housing to meet the needs of all New Yorkers,” said Comptroller Brad Lander. “I am grateful to Deputy Comptroller for Public Finance Marjorie Henning and her team for spearheading this pioneering municipal finance effort along with the Mayor’s Office of Management and Budget.”

Read more.

Retirement

Marjorie Henning, who has served as Deputy Comptroller for Public Finance at the Comptroller’s Office for over four years, will retire from City government at the end of April. Under her leadership the City:

• Issued its first ESG-labeled Social bonds to fund affordable housing
• Added Kroll Bond Rating Agency as a fourth rating for the City’s General Obligation bonds
• Navigated market volatility through the pandemic and other disruptions

Marj is a three-decade veteran of the municipal market. Before leading Public Finance at the New York City Comptroller’s Office, she spent five years at Citigroup as a Director in the Municipal Securities Division. Before that, Marj was General Counsel to the New York City Office of Management and Budget (OMB), where she participated in the creation and structuring of the NYC Samurai Funding Corp., the NYC Transitional Finance Authority, TSASC, Inc., Hudson Yards Infrastructure Corporation, and other special-purpose financing vehicles. Marj also managed the City’s and its related issuers’ $13 billion in outstanding variable rate demand obligations and the associated bank facilities at OMB.

Please join us in thanking Marj for her many years of valuable service to the people of New York City.

Streamlining Capital Project Approvals

In February, the New York City Comptroller’s Office announced updated guidance to City agencies that streamlines approvals for using capital dollars for certain kinds of climate, streetscape, park, infrastructure, and building improvements. The Comptroller’s Directive 10 revisions fulfill commitments proposed by the Mayor’s Capital Process Reform Task Force, which convened leaders in industry, labor, and the M/WBE community to recommend ways to deliver city capital projects faster, better, and cheaper. Read the press release.

City Issuers Successfully Navigate Challenging Markets

February and March saw five bond issuances across the General Obligation (GO), Transitional Finance Authority (TFA), and New York City Municipal Water Finance Authority’s (NYW) credits, including NYW’s largest-ever transaction.

Retail investors continued to drive demand for the bonds, as markets reacted to changing interest rates and market volatility. The March 2023 GO sale had the lowest interest rate spreads to the municipal bond benchmark rate, MMD, since the beginning of 2022, demonstrating the City’s resilient credit, even in uncertain markets. It was also the first City bond sale in which individual investors were given order priority over professional retail accounts.

New York by the Numbers

The City Comptroller’s Office continues to track economic indicators in its monthly New York by the Numbers report.  The most recent report, released on March 21, spotlights care work and discusses employment statistics by sector, real estate markets, Wall Street profits, and tourism.

Looking Ahead

The City of New York posted notices of a potential tender offer and/or refunding. Read the notice and supplement.

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