City of Philadelphia Prices 872 million of General Obligation Bonds and Conducts Current Refunding and Tender for Additional Savings

Philadelphia priced approximately $872 million in General Obligation Bonds to fund capital projects and generate nearly $21 million in savings on existing bonds. The bond sale on June 10 involved issuing $419 million for new investments and refunding $470 million from older bonds, resulting in a total savings of $20. 6 million through both a current refunding and a tender exchange. The City benefited from robust investor demand, with tax-exempt bonds oversubscribed 2. 9 times and taxable bonds receiving six times the interest.

Mayor Cherelle L. Parker remarked that the strong interest in the bonds signals confidence in the City’s fiscal management. The transaction allowed the City to reduce debt service costs by more than $7 million over the bonds' 20-year lifespan. Philadelphia’s credit ratings were affirmed by Moody’s, Fitch, and S&P, reflecting the City’s highest combination of ratings in over four decades. BofA Securities led the transaction, with Loop Capital as the co-senior manager.

The bonds closed on June 18, 2025.