Board approves $357.3 million tax‑exempt bond issue; final terms reported

The State Board of Finance on June 25 adopted the amending resolution finalizing the issuance of the State of New Mexico Tax Bond Series 2026A, setting the par amount at $357,320,000 and noting $28,863,026.80 in original issue premium that will help fund project costs.

Counsel Luis (Liberty Law Firm) told the board the bonds will mature annually beginning July 1, 2027, through July 1, 2036, and that certain maturities include call features. He said the bonds were sold to the original purchaser, Morgan Stanley & Co., which offered the lowest true interest cost at the public sale. "The final amount of these bonds is less than the maximum amount authorized by the Board of $385,000,000," Luis said during the presentation.

Financial adviser David (on the line) described market context, noting municipal demand held well despite pressure in the broader fixed‑income market. Counsel presented sale metrics in a final term certificate: true interest cost reported roughly 3.5084% and a net effective interest rate of about 3.693%. Ashley, staff lead on the financing, confirmed the underwriting discount was $1,180,117.91 and that the premium will be used for project expenses.

The board voted by roll call to adopt item 13 and later received the final term certificate under item 17, with members recording unanimous support during the roll calls. The resolution authorizes use of proceeds for 67 capital outlay projects across 23 agencies as described in attachments to the resolution.

The action implements prior delegation to staff to set final terms within parameters the board adopted in May; staff said bond proceeds will be applied in accordance with statutory and administrative requirements and subject to due diligence.