New Mexico Bond Financing

Business Bond

Through what is referred to as the “BBB Program”, the State Investment Council may invest up to $20 million in a bond rated BBB or better, the proceeds of which may fund the expansion or relocation of a business in New Mexico. The bond must be issued by a U.S. corporation, and the bond’s rate of interest shall not exceed the equivalent yield on comparable U.S. Treasury securities plus 100 basis points, depending on the financial condition of the borrower and the nature of the investment. 7-27-5.4 NMSA 1978

Economic Development Revolving Fund Bond

Under the Statewide Economic Development Act, the New Mexico Finance Authority may issue economic development revolving fund bonds for making loans, entering into loan participations, and providing loan guarantees. The economic development revolving fund bonds issued by the authority may be sold at any time at private or public sale. 6-25-17 NMSA 1978

Energy Efficiency & Renewable Energy Bonds

Through the Energy Efficiency and Renewable Energy Bonding Act, the New Mexico Finance Authority may issue up to $20 million in bonds backed by the state’s gross receipts tax to make loans to state agencies, universities and public schools to fund energy-efficiency and renewable-energy renovations at existing facilities. To pay debt service on the bond, 90 percent of the expected energy utility bill savings is “captured” from the participating agencies’ budgets. 6-21D-1 NMSA 1978

Project Revenue Bond

Under the Statewide Economic Development Act, the New Mexico Finance Authority may issue a project revenue bond to fund a qualified project. Project revenue bonds may be executed and delivered at any time and may be sold at public or private sale. All project revenue bonds issued pursuant to the Statewide Economic Development Finance Act shall be negotiable. 6-25-7 NMSA 1978

Renewable Energy Transmission Bond

As part of the Renewable Energy Transmission Authority (RETA) Act, RETA may issue and sell revenue bonds, for the purpose of entering into a project when the authority determines that the project is needed. The net proceeds from the bonds are appropriated to RETA for the purpose of financing or acquiring eligible facilities. 62-16A-1 NMSA 1978