High demand for NY General Obligation Bonds lowers state costs, benefits taxpayers

New York State Comptroller Thomas P. DiNapoli announced the awarding of $572,715,000 in New York State General Obligation (GO) Bonds through a negotiated sale. The award comes after an impressive response during a one-day retail and institutional order period, where total orders surpassed $1.6 billion, a staggering 2.8 times the available bond amount. The overwhelming demand allowed for a reduction in yields across several maturities, with over 55 percent of the total bond sale sustained by retail orders. Remarkably, 85 percent of these were procured by New York-based retail buyers. The GO Bonds revealed a true interest cost of 3.99 percent.

The assorted series of bonds have distinctive applications. The Series 2023A and Series 2023B Tax-Exempt Bonds, totaling $458,110,000, will financially back projects approved by various voter-sanctioned bond acts, set to mature over eighteen years. Meanwhile, the Series 2023C Tax-Exempt Refunding Bonds, valued at $104,445,000, will serve in the procurement and refunding of certain outstanding bonds, achieving a taxpayer saving of over $8.5 million, or 6.3 percent of the par amount of bonds refunded, maturing over fourteen years. Lastly, Series 2023D Taxable Bonds, amounting to $10,160,000, will mature over one year and finance projects endorsed by the Rebuild and Renew New York Transportation (2005) bond act.

This successful sale, managed by BofA Securities, Inc. along with several co-managers, demonstrates a robust investor appetite for New York’s General Obligation bonds, reducing the state’s borrowing costs and subsequently benefiting taxpayers. The secured bonds are scheduled for delivery on October 11, 2023. DiNapoli expressed satisfaction over the sale results, emphasizing the substantial demand from various investor scales as a positive sign for the state’s economic landscape.