News
The City of New York Announces Successful Sale of $1.08 Billion of General Obligation Bonds
The City of New York (“the City”) announced the sale of $1.08 billion of General Obligation Bonds, comprised of $950 million of tax-exempt fixed rate bonds and $130 million of taxable fixed rate bonds. Proceeds of the bond sale will be used to fund capital projects.
During the retail order period for the tax-exempt bonds, City received just over $687 million of orders from retail investors, of which over $360 million was usable. During the institutional order period, the City received approximately $4.2 billion of priority orders, representing just over 7.1x the bonds offered for sale to institutional investors.
Given investor demand for the tax-exempt bonds, yields were reduced by 1-4 basis points in 2035 through 2040, by 8 basis points in 2041 through 2043, by 10 basis points in 2044 through 2046, and by 2 basis points in 2049. Final yields ranged from 2.49% in 2024 to 4.64% in 2049.
For the taxable bonds, during the order period, City received roughly $219 million of orders, representing nearly 1.7x the bonds offered.
Given investor demand for the taxable bonds, yields were reduced by a total of 7 basis points in 2026 and by 4 basis points in 2027. Final yields ranged from 3.732% in 2026 to 4.193% in 2030.
The tax-exempt and taxable fixed rate bonds were underwritten through a syndicate led by book-running lead manager BofA Securities, with Citigroup, J.P. Morgan Securities, Jefferies, Loop Capital Markets, Ramirez & Co., RBC Capital Markets, Siebert Williams Shank, and Wells Fargo Securities serving as co-senior managers.