Transaction Will Save $33.2 Million for City Ratepayers 

The New York State Environmental Facilities Corporation (EFC) has successfully closed a $234.8 million Series 2026 A revenue bond issuance on behalf of the New York City Municipal Water Finance Authority. Bond proceeds will be used to refund certain outstanding debt issued for New York City wastewater and drinking water capital projects. The transaction will save $33.2 million in debt service for City ratepayers.

“Every time EFC lowers borrowing costs, we’re keeping money in the pockets of New York City ratepayers,” President and CEO Maureen A. Coleman said. “This proactive financial management is delivering real impact for our largest borrower by keeping projects affordable and providing long-term sustainability.”

Proceeds will refund EFC’s outstanding Series 2016 A Bonds. The transaction achieved a highly competitive true interest cost (TIC) of 2.76%. EFC has executed bond refundings on behalf of New York City since 1997. In the past decade alone, EFC has saved New York City ratepayers more than $446 million through proactive debt management.

Bond financing is integral to EFC’s mission to affordably fund critical water infrastructure and support the long-term sustainability of the Clean Water and Drinking Water State Revolving Funds. The State Revolving Funds remain the State’s primary tool for helping municipalities invest in water quality improvements without overburdening ratepayers.

The bonds were assigned AAA/AAA/Aaa ratings from Fitch, S&P and Moody’s ratings services, reflecting the strong security provisions and credit quality underpinning the transaction.

New York City Department of Environmental Protection Commissioner Lisa Garcia said, “DEP is grateful to Governor Hochul and EFC for this partnership that brings benefits to our millions of shared constituents in New York City. These savings will help DEP even more efficiently fulfill our mission and keep system costs, and rates, lower for all New Yorkers."

New York City Municipal Water Finance Authority Executive Director Philip Wasserman said, “We are grateful for EFC’s partnership and the continued relief generated for New York City ratepayers. The State Revolving Funds and EFC’s active debt management are critical for maintaining our water and sewer system and supporting rate affordability.”