EFC: More than $19 million in cost savings for local ratepayers for water quality improvement projects

Bond sale provides more than $144M to refinance local borrowing costs and provide new, low-interest financings

New York State Environmental Facilities Corporation President and CEO Maureen A. Coleman announced EFC successfully closed its State Revolving Funds Revenue Bonds, Series 2021 B (2010 Master Financing Program) (Green Bonds) bond transaction that will help ratepayers in 54 communities save $19 million over the next 20 years. Proceeds from the bond sale will be used to refinance multiple drinking water and wastewater infrastructure projects, enabling municipalities and public authorities to benefit from lower interest rates, resulting in reduced debt service payments over the remaining life of their long-term financings. In addition, $125 million will be used to provide 32 local governments and public authorities with new, long-term low-interest financing for their drinking water and wastewater system upgrades. 

“This was EFC’s second successful bond sale in 2021, helping New York state to maximize the amount of funding available to local governments for water quality infrastructure projects,” Coleman said. “EFC is committed to actively managing its portfolio to maximize resources and help communities lower the cost associated with clean and drinking water infrastructure projects.”

Local governments and public authorities participate in project financings through EFC and receive low-interest financings for drinking water and wastewater infrastructure projects through the state’s Drinking Water State Revolving Fund and the Clean Water State Revolving Fund. Refunding bond sales deliver additional savings for EFC’s municipal partners by refinancing the original bonds that funded their projects at an even lower interest rate. EFC annually reviews its portfolio and leverages its high credit rating and market demand for tax-exempt bonds to help its municipal recipients recognize these savings. 

When combined with EFC equity, $125 million will support new or recently completed infrastructure projects in 32 communities. In addition, the bond sale will refund local borrowing costs on 54 water-quality projects for communities across the state to help local ratepayers save $19 million through lower interest rates available to EFC.

The bonds were underwritten through a syndicate led by Goldman, Sachs & Co. as the senior manager, and Siebert Williams Shank & Co. as the co-senior manager. EFC’s financial advisers for the transaction were Hilltop Securities, TKG & Associates, and Bright Bay Advisors. EFC’s co-bond counsel on the transaction was Nixon Peabody LLP and D. Seaton and Associates, P.A., P.C.

•Previously Completed Infrastructure Projects: $19 million in savings

•Clean Water Recipients: $9,437,911 in savings

Local recipients include:

√ Erie County

√ Town of Lewiston

•Drinking Water Recipients: $10,081,346 in Savings

Local recipients include:

√ Buffalo Municipal Water Financing Agreement

•Water-Quality Projects in 32 Communities: $125 million for new projects

•Clean Water Project Recipients: $89,885,490 in funding

Local recipients include:

√Village of Depew

•Drinking Water Project Recipients: $35,899,647 in funding