New York plans to sell $317.2 million in general obligation bonds Sept. 17 to finance transportation, education and environmental projects. State Comptroller Thomas DiNapoli said the deal will be the first state general obligation bond issue to carry an environmental, social and governance designation.
The competitive sale will include tax-exempt and taxable sustainability bonds. The state expects delivery of the bonds on Sept. 30, though it reserves the right to change, amend or cancel the sale.
About $285 million in net proceeds from the Series 2026A tax-exempt bonds will provide new funding for projects authorized under five voter-approved bond acts. Those laws cover environmental quality, clean water and air, transportation, smart schools and the 2022 Clean Water, Clean Air and Green Jobs program.
The tax-exempt bonds are expected to mature over 16 years, from 2032 through 2047.
The Series 2026B taxable bonds are expected to generate $52.8 million in net proceeds for projects authorized by a similar group of voter-approved programs. Those bonds are expected to mature over six years, from 2027 through 2032.
The bonds are scheduled to be awarded through electronic competitive bidding conducted through BiDCOMP/Parity on the comptroller's behalf. A notice of sale was published Sept. 10 in The Bond Buyer.
DiNapoli's office also made a preliminary official statement available for potential investors. The document contains the financial and legal disclosures associated with the offering.
General obligation bonds are backed by the state's pledge to repay debt from available revenues. The sustainability label identifies the public-purpose projects the borrowing is intended to finance but does not change that repayment pledge.
The planned sale combines borrowing for long-standing capital programs with projects approved under the state's most recent environmental bond act. Final pricing and buyers will be determined through the Sept. 17 bidding process.
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