New York State Issues First-Ever ESG-Designated GO Bonds Worth $318.9 Million

New York State Comptroller Thomas P. DiNapoli has announced the sale of $318.9 million in New York State General Obligation bonds through competitive sale, marking the first time the state's GO bonds have carried an Environmental, Social and Governance designation as Sustainability Bonds. The sale comprised $259.4 million of Series 2026A Tax-Exempt Sustainability Bonds and $59.5 million of Series 2026B Taxable Sustainability Bonds, with delivery scheduled for September 30, 2026.

 

The winning bids went to BofA Securities for the Series 2026A tax-exempt bonds at a true interest cost of 4.283207 percent, and Wells Fargo Bank for the Series 2026B taxable bonds at 4.888999 percent. The state received seven legitimate bids for the tax-exempt series and ten for the taxable series. Net proceeds from both series will finance voter-approved projects authorised under several bond acts spanning environmental quality, clean water and air, transportation renewal, school infrastructure, and green jobs, dating from as early as 1972 through 2022. The tax-exempt bonds mature over fifteen years from 2032 through 2046, while the taxable bonds mature over six years from 2027 through 2032.

 

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DiNapoli said "the ESG designation as Sustainability Bonds demonstrates the State's commitment to progress by financing projects for environmental and social issues," adding that "strong market interest was generated by the safety and rarity of the NYS GO credit, translating into favorable pricing for the state." Both bond series are rated AA+ by S&P Global Ratings, Aa1 by Moody's Ratings, AA+ by Fitch Ratings and AA+ by Kroll Bond Rating Agency.

 

Source: Office of the New York State Comptroller