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Board authorizes up to $385M in severance‑tax bonds for legislatively approved projects
Summary
The State Board of Finance adopted an authorizing and delegating resolution for up to $385,000,000 in Series 2026A severance‑tax bonds, with maturities no later than July 1, 2036, and a maximum true interest cost of 5%. Counsel said the bonds fund legislatively appropriated capital projects and set parameters for public competitive sale.
Bond counsel Luis Casco told the board the authorizing resolution for the State of New Mexico severance‑tax bonds, Series 2026A, authorizes a public competitive sale with a maximum principal of $385,000,000, maturities not to exceed 07/01/2036, and a true interest cost cap of 5%. "These bonds are a series of long term bonds customarily issued by this body to fund legislatively appropriated projects," Casco said.
Casco walked the board through delegations that allow the board’s executive officer to set final terms within the resolution’s parameters on sale day. The resolution passed on a roll‑call vote; the board instructed staff and counsel to complete due diligence and return with final project allocations for any blank project lines in an amending resolution next month.
Proponents said the caps and the 10‑year issuance approach are intended to curb overleveraging and align issuance with sustainable revenue assumptions. The board approved the resolution without recorded dissent.
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