Albuquerque, New Mexico, issued $111.9 million in bonds to finance a variety of capital improvement projects.
The city sold the bonds in two series. The Series 2024A bonds, consisting of $102.9 million, mature between 2025 and 2039, yielding between 2.84% and 3.75%. The Series 2024B bonds, consisting of $9 million, mature between 2039 and 2040, yielding between 3.75% and 3.85%. The securities received a rating of AAA from S&P Global Ratings.
The rating reflects “the city’s large contribution to the state’s economy, very strong management, strong budgetary performance, and adequate debt and contingent liability profile,” S&P analyst Calix Sholander said in a press release.
The Series 2024A bonds will fund several capital improvement projects. The largest disbursement, about $32.3 million, will fund upgrades to the city’s streets. The Series 2024B bonds will finance projects related to the city storm sewer facilities.
Albuquerque is the biggest city in New Mexico and its economic engine. The city’s economy has recently been boosted by a growing presence of the entertainment industry and investment in solar technology. Film and television production added more than $1 billion to New Mexico’s economy in the two year period from 2020 to 2021, according to the New Mexico Film Office, a division of the state.
The bonds are general obligations of the city, backed by its full faith and credit.
BofA Securities, Inc served as lead underwriter on the issuance, purchasing the bonds for $118.7 million. The price reflected a premium of about $7 million. RBC Capital Markets, LLC acted as municipal advisor.