Austin Secures $461M in Bond Sales for City Improvements and Upgrades

Austin has successfully issued $461.4 million in securities to fund essential capital improvement projects and enhancements throughout the city. 

The sale included $292.6 million in Public Improvement and Refunding Bonds along with $100.3 million in Certificates of Obligation, as stated in the preliminary announcement published on MuniOS. The maturity of these bonds spans from 2025 to 2044, providing a 5% interest rate, while the yields fluctuate between 2.84% and 3.49%.

Furthermore, $29.4 million in Public Property Finance Contractual Obligations were issued, maturing from 2025 to 2031, featuring interest rates of 5% and yields ranging from 2.620% to 3.030%. Taxable bonds comprised $31.8 million in Public Improvement Bonds and $7.3 million in Certificates of Obligation, maturing between 2025 and 2039, with interest rates ranging from 4.7% to 5%.

The funds generated from these securities will be allocated to capital improvement projects, refinance segments of the city’s general obligation debt, and assist in the procurement of equipment for various departments. 

Austin's five-year capital improvement program projects $2.2 billion in citywide expenditures for fiscal year 2025.

The bonds garnered impressive credit ratings, as S&P Global Ratings awarded them AAA and Fitch Ratings rated them AA+. Piper Sandler & Co. and Baird acted as the lead managers for the sale.

This sale highlights Austin's dedication to infrastructure development and financial prudence, ensuring the city is prepared to accommodate its expanding population and services.