← Back to Latest News

California State Agencies Issue More Than $500 Mln in Bonds

By Munichain News Desk

A California state agency that issues low interest rate housing loans sold more than $500 million in bonds to purchase affordable housing loans originated by Citibank. 

The bonds will finance affordable housing projects throughout California, from Orange County in the state’s south to Sonoma County in the north. The bonds will be secured by mortgages on 15 multifamily affordable housing projects. The developments will include 1,901 units, more than 70 percent of which will be designated for low-income housing.

The bonds, which were sold in two series of equal value by the California Housing Finance Agency (CalHFA), received a rating of BBB from S&P Global Ratings. Class A bonds will have a fixed rate of 4.375%, while Class X bonds will be sold at a variable rate. Both series mature on Sept. 1, 2036. 

According to its website, CalHFA “supports the needs of renters and homebuyers by providing financing and home loan programs that create safe, decent and affordable housing.” 

In December of last year, CalHFA was upgraded to AA from AA- by S&P Ratings, which cited improvements in the agency’s financial ratios and assigned a stable outlook. The upgrade marked the agency’s highest-ever credit rating. 

CalHFA was founded in 1975 to provide housing to California residents with low or moderate incomes. It finances low-interest rate loans to these residents with bond issuances. 

Citigroup Global Markets Inc served as lead underwriter on the issuance.

Subscribe to the Munichain Newsletter

The latest municipal bond market news and insights delivered to your inbox.