San Francisco (May 1, 2025) - On Wednesday, April 30, the San Francisco Unified School District (SFUSD) closed on the sale of $160 million in general obligation bonds. The transaction, underwritten by a team from Stifel and Bank of America, completed with an effective interest rate of 4.25%.
The bonds represent the first series of bonds sold under 2024 Proposition A, a $790 million bond measure approved by 75% of voters on Nov. 5, 2024. Proceeds from the sale of bonds will be used in accordance with the Bond Measure Resolution approved by the Board of Education – to create conditions for modern learning, enhance safety, and improve core building functions, for SFUSD students. The bond sale aligns with SFUSD’s commitment to its guardrail of transparent Resource Allocation.
The bond sale was successful from a number of perspectives. The District maintained its bond ratings at "A1" by Moody's Ratings and "AA-" by S&P Global Ratings. The transaction attracted 24 institutional investors, including Vanguard, Blackrock, and PIMCO (Pacific Investment Management Company). As in recent years, the bonds will be repaid over 20 years (as opposed to 30 years as is typical for California school bonds), reducing taxpayer costs by $60 million.
“I want to express my heartfelt gratitude to our community for their overwhelming support in approving the school facilities bond this past November,” said Superintendent Dr. Maria Su. “Thanks to San Francisco voters, we are now moving forward with the sale of the first round of bonds which allows us to continue making much-needed improvements of our school buildings. Our students deserve safe, modern, and inspiring environments to learn, play and thrive.”
The District has been managing an active bond program for more than 20 years. In recent years, the bond program has allowed the District to invest an average of $100 million to $150 million in facility maintenance and modernization.
Learn more about the SFUSD bond program.
###
