Wednesday, April 19, 2017

IBank Issues Record California Green Muni Bond

$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
IssuerDate*AmountGeneral Purposes
State of California10/7/2014$300,000,000Mass Transit, Clean Water, Energy Efficiency
San Francisco Public Utilities Commission5/20/2015$32,025,000Renewable Energy
City of Los Angeles6/4/2015$188,755,000Wastewater, Digester, Water Purification
East Bay Municipal Utility District6/17/2015$74,335,000Clean Drinking Water, Conservation, Flood Protection, Renewable Energy, Biodiversity
City of Los Angeles6/30/2015$100,835,000Wastewater, Water Purification, Digester
San Diego Unified School District1/5/2016$100,000,000Energy Efficient Buildings, Renewable Energy
IBank4/28/2016$410,735,000Clean Water, Water Pollution Control
San Francisco Public Utilities Commission5/24/2016$240,000,000Clean water, wastewater
San Diego County Water Authority6/23/2016$98,945,000Water Efficiency
Midpeninsula Open Space District9/22/2016$57,410,000Open Space Acquisition, related
Port of Los Angeles10/13/2016$35,205,000Open space, habitat, green building
City of Napa10/20/2016$12,500,000Recycling and materials recovery facility
Los Angeles County Sanitation District11/16/2016$170,265,000Reclaimed water projects, sewage system Improvements
San Francisco Public Utilities Commission12/14/2016$259,350,000Clean water projects (Climate Bond Certified)
IBank3/23/2017$450,000,000Clean Water, Water Pollution Control
2015 Subtotal$395,950,000
2016 Subtotal$1,384,410,000
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)