City of Philadelphia Successfully Prices $170 million of Bonds to Fund the Rebuild Program and Refund Existing Bonds for Additional Savings

PHILADELPHIA - The City of Philadelphia successfully priced approximately $170 million of Bonds through the Philadelphia Authority for Industrial Development (PAID) to support vital improvements at parks, recreation centers, and libraries across Philadelphia as part of the Rebuild program while achieving over $3.5 million in savings on existing debt.

Priced on Tuesday, September 16, 2025, the $129 million issue was the third and final installment of Rebuild Bonds. The City has invested over $300 million through Rebuild in these community assets, completing improvements at 37 sites through a combination of funding sources. This transaction will provide an additional $140 million toward completing the remaining 35 sites which are in the planning and evaluation, engagement and design, or construction phases. In addition, the Bonds refunded nearly $43 million in previously issued bonds for net present value savings of $3.5 million, or eight percent.

During the sale, the City took advantage of strong investor demand to reduce overall borrowing costs. The City received 2.4 times the interest relative to bonds available from 34 investors. This additional demand enabled the City to achieve lower interest rates on the bonds, increasing the amount of funds raised by the bonds without increasing debt service costs. The City was able to generate an additional $3.2 million in project funds and increase refunding savings by approximately $400 thousand (one percent of refunded par).

"I am pleased that the City of Philadelphia has successfully priced $170 million in bonds to fund our ongoing Rebuild program," said Mayor Cherelle L. Parker. "Rebuild has improved 37 city sites where children, families and residents can recreate and play, and these additional funds will help to improve 35 more Rebuild sites. In addition, these bonds refunded existing debt and saved city taxpayers $3.5 million in the process. This is an excellent example of fiscal responsibility, and I'm proud of City Treasurer Jacqueline Dunn and the entire team that worked on this transaction."

In advance of the sale, the rating agencies affirmed the City's existing credit ratings. The bonds were rated A1 by Moody's Ratings and A-plus by Fitch Ratings and S&P Global Ratings. In the last two years, Moody's, Fitch and S&P have all upgraded the City's rating. Philadelphia has its highest combination of bond ratings in more than four decades. In general, higher credit ratings result in lower borrowing costs.

"We were pleased that the strong investor demand allowed us to maximize our investment in the Rebuild program and reduce overall costs for the City," said Jacqueline Dunn, City Treasurer.

Ramirez & Co. led the transaction with Janney Montgomery Scott as the co-senior manager. PFM and Acacia Financial Group served as co-municipal advisors. The bonds closed today, Wednesday, October 1, 2025.