Financing
2. New York City General Obligation Bonds
3. The New York City Transitional Finance Authority
5. The New York City Municipal Water Finance Authority
6. Hudson Yards Infrastructure Corporation
The New York City Municipal Water Finance Authority
The New York City Municipal Water Finance Authority (NYW) was created in 1984 to finance capital improvements to the city’s water and sewer system. Since its first bond sale in November 1985, the Authority has sold $88.4 billion of bonds.
Of the aggregate bond par sold, as of May 1, 2025, $34.2 billion is outstanding, $39.3 billion, including $665 million of special resolution crossover bonds, was refinanced, $6.8 billion was defeased with Authority funds including economically defeased bonds, and $8.1 billion was retired with revenues as they matured. In addition to this long-term debt, NYW uses bond anticipation notes (BANs) issued to the New York State Environmental Facilities Corporation (EFC) and has used a commercial paper program as a source of flexible short-term financing. As of May 1, 2025, NYW had $242.3 million in outstanding BAN draws and available undrawn capacity of $644.9 million pursuant to agreements with EFC to fund certain projects. NYW is authorized to draw up to $600 million of commercial paper notes, including up to $400 million of Extendable Municipal Commercial Paper. Currently, the Authority has no commercial paper outstanding.
NYW’s outstanding debt also includes floating rate bonds, which have been a reliable source of cost-effective financing. As of May 1, 2025, NYW had $4.3 billion of floating rate bonds representing approximately 13 percent of its outstanding debt. NYW’s floating rate exposure consists primarily of tax-exempt floating rate debt supported by liquidity facilities. NYW also has floating rate bonds which do not require a bank facility, where interest rates are set periodically according to a benchmark index, or by a remarketing agent.
NYW participates in the State Revolving Fund (SRF) program administered by the EFC. The SRF provides a source of long-term below-market interest rate borrowing, subsidized by federal capitalization grants, state matching funds, and other funds held by EFC. The Authority’s BAN draws are expected to be refinanced with fixed rate second resolution bonds issued to EFC.
Summarized in the table titled “NYW Issuance” is the issuance that has closed to date in 2025. The proceeds of the bonds were applied to pay the cost of improvements to the system, refund or purchase certain of the Authority’s outstanding debt, and pay the costs of issuance.
NYW Issuance
| Series | (N)ew $/ (R)efunding | Issue Date | Par Amount | True Interest Cost (TIC) | Longest Maturity |
|---|---|---|---|---|---|
| 2025 AA | N/R | 10/2/2024 | $887 | 4.40% | 20542 |
| 2025 BB | N | 3/6/2025 | 950 | 4.55% | 2055 |
| 2025 CC | R | 4/10/2025 | 560 | 4.00% | 2046 |
| $2,397 |
On April 22, 2025, NYW priced approximately $650 million of Fiscal 2025 Series DD fixed rate bonds, the proceeds of which will be used to refund certain outstanding bonds. This transaction is scheduled to close on May 13, 2025.
During the period from 2025 to 2029, NYW expects to issue an average of approximately $2.5 billion of new money bonds per year. Of this amount, NYW plans to issue to EFC about $300 million of bonds annually, taking advantage of the interest rate subsidy available for qualifying projects, and minimizing the overall costs of its financing program. NYW expects to issue approximately 90 percent of its new debt per year as fixed rate debt with the remainder issued as floating rate debt, subject to market conditions.