Results of Sale of General Obligation Refunding Bonds

San Francisco, CA (May 8, 2020) — On Thursday, May 7, 2020, the City finalized the sale of $195.25 million of General Obligation Refunding Bonds, Series 2020-R1 (the “Refunding Bonds”). The Refunding Bonds were issued to refinance outstanding general obligation bonds (the “Prior Bonds”) which originally funded capital projects of voter-approved bond programs such as 2008 Clean & Safe Neighborhood Parks, 2010 Earthquake Safety & Emergency Response and 2011 Road Repaving & Street Safety.


The issuance of the Refunding Bonds resulted in lower interest rates for the City’s debt which resulted in savings of $38 million over 15 years which represents $31.2 million in net present value savings which equates to 13.4% of the amount of bonds refunded.


The Refunding Bonds are rated Aaa /AAA/AA+ by Moody’s, S&P and Fitch, respectively — high ratings of creditworthiness — and were marketed and sold to investors through an underwriting team led by J.P. Morgan, with Loop Capital, Morgan Stanley, and Ramirez & Co. The City’s Refunding Bonds were well received by the market, receiving over 200 orders from more than 50 institutional investors and retail investors. The strong investor demand allowed the City to lock in a true interest cost (TIC) of 1.93% for the transaction. The final bond maturity of the Refunding Bonds is June 15, 2035.


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About the Office of the Controller

The Controller's Office works to ensure the City's financial integrity and to promote efficient, effective, and accountable government. We strive to be a model for good government and to make the City a better place to live and work. The Controller's Office is responsible for governance and conduct of key aspects of the City's financial operations, including operating the City's financial systems and procedures, maintaining the City's internal control environment, processing payroll for City employees, managing the City's bonds and debt portfolio, and processing and monitoring the City's budget. The department produces regular reports and audits on the City's financial and economic condition and the operations and performance of City government.


About the Office of Public Finance

The Office of Public Finance is responsible for issuing and managing the City's general fund debt obligations. Its mission is to provide and manage low-cost debt financing of large-scale, long-term capital projects and improvements that produce social and economic benefit to the City and its citizens while balancing market and credit risk with appropriate benefits, mitigations and controls.