$450 Million for Water Projects
The California Infrastructure and Economic Development Bank (IBank) recently issued the largest green municipal bond ever offered in California. The $450 million bond will assist the State Water Resources Control Board in providing low-cost financing for critical water projects throughout California through its Clean Water State Revolving Fund. The previous record issuance was a similar bond issued by the IBank in 2016 for $410 million.
With this recent issuance, the total California has topped $2.5 billion in green muni bond issuances since they were first offered in 2014 (see chart below).
According to the IBank staff report for the recent bond,
"The purpose of this financing is to enable communities to comply with the State’s regulations and mandates under the Porter-Cologne Act and the federal Clean Water Act, which aims at improving water quality, protecting the environment and public health and making the best use of limited water supplies. The 2017 Bonds will be marketed and sold as Green Bonds to provide the opportunity to investors to invest directly in bonds that support environmentally beneficial projects."
"The State Water Board will issue the 2017 Bonds as “Green Bonds” since the projects’ meet the standards of the Federal and State Clean Water Acts."
The IBank issue will likely help California reach a record volume of green muni bonds in 2017, breaking the 2016 record of over $1.3 billion in muni bond issuances. New green bonds are in the works from a variety of state and local agencies for transit, water, green building and other projects.
|California Green Muni Bond Issuances|
|State of California||10/7/2014||$300,000,000||Mass Transit, Clean Water, Energy Efficiency|
|San Francisco Public Utilities Commission||5/20/2015||$32,025,000||Renewable Energy|
|City of Los Angeles||6/4/2015||$188,755,000||Wastewater, Digester, Water Purification|
|East Bay Municipal Utility District||6/17/2015||$74,335,000||Clean Drinking Water, Conservation, Flood Protection, Renewable Energy, Biodiversity|
|City of Los Angeles||6/30/2015||$100,835,000||Wastewater, Water Purification, Digester|
|San Diego Unified School District||1/5/2016||$100,000,000||Energy Efficient Buildings, Renewable Energy|
|IBank||4/28/2016||$410,735,000||Clean Water, Water Pollution Control|
|San Francisco Public Utilities Commission||5/24/2016||$240,000,000||Clean water, wastewater|
|San Diego County Water Authority||6/23/2016||$98,945,000||Water Efficiency|
|Midpeninsula Open Space District||9/22/2016||$57,410,000||Open Space Acquisition, related|
|Port of Los Angeles||10/13/2016||$35,205,000||Open space, habitat, green building|
|City of Napa||10/20/2016||$12,500,000||Recycling and materials recovery facility|
|Los Angeles County Sanitation District||11/16/2016||$170,265,000||Reclaimed water projects, sewage system Improvements|
|San Francisco Public Utilities Commission||12/14/2016||$259,350,000||Clean water projects (Climate Bond Certified)|
|IBank||3/23/2017||$450,000,000||Clean Water, Water Pollution Control|
|2017 Subtotal to March||$450,000,000|
|* Dated per MSRB|
|Total All Issuances||$2,530,360,000||(prepared/updated by Michael Paparian 4/19/2017)|