New York State has sold $318.9 million in general obligation bonds carrying an environmental, social and governance designation for the first time, state Comptroller Thomas DiNapoli announced.
The two competitive sales will finance voter-authorized transportation, education and environmental projects, with delivery scheduled for Sept. 30, 2026.
The sale includes $259.4 million in tax-exempt Series 2026A sustainability bonds and $59.5 million in taxable Series 2026B sustainability bonds.
BofA Securities submitted the winning bid for the tax-exempt bonds at a true interest cost of 4.283207%. Wells Fargo Bank won the taxable issue with a true interest cost of 4.888999%.
Proceeds cover projects authorized by bond acts
The state received seven qualifying bids for the Series 2026A bonds. Proceeds will support projects authorized through the 1972 Environmental Quality Bond Act, the 1996 Clean Water/Clean Air Bond Act, the 2005 Rebuild and Renew New York Transportation Bond Act, the 2014 Smart Schools Bond Act and the 2022 Clean Water, Clean Air and Green Jobs Environmental Bond Act.
The tax-exempt bonds will mature over 15 years, from 2032 through 2046.
The state received 10 qualifying bids for the Series 2026B taxable bonds. Those proceeds will support projects under the 1986 Environmental Quality Bond Act and the same 1996, 2005, 2014 and 2022 bond acts included in the tax-exempt sale.
The taxable bonds will mature over six years, from 2027 through 2032.
Ratings remain in the double-A range
The two series are rated AA+ by S&P Global Ratings, AA+ by Fitch Ratings and AA+ by Kroll Bond Rating Agency. Moody's Ratings assigned the bonds an Aa1 rating.
DiNapoli said the sustainability designation reflects the environmental and social purposes of the projects being financed. He said demand for the state's general obligation credit produced favorable pricing.
All projects financed by the bonds were previously authorized by voters, according to the comptroller's office.
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