The Massachusetts Clean Water Trust is planning its first green-bond sale for the week of Dec. 8, according to state Treasurer Steven Grossman. The bonds will finance roughly $231million of water infrastructure projects in the commonwealth. The sale will occur during the week of Dec. 8.
Massachusetts Treasury released the preliminary official statement on Nov. 26.
Massachusetts in 2013 became the first state to offer green bonds in 2013, and this is the first time the Clean Water Trust has done such an issuance. In addition to funding environmentally beneficial projects, green bonds appeal to a wider range of bidders, increasing competition and potentially lowering borrowing costs, said Grossman.
State officials said the bonds appeal to pension funds and endowments that dedicate a portion of their holdings - by choice or requirement -- to green initiatives.
"These bonds will offer investors an option that directly funds environmentally beneficial infrastructure projects right here in Massachusetts," said Grossman.
The Clean Water Trust is working with JPMorgan as lead managing underwriter of the green bonds. J.P. Morgan is one of the banks that drafted the green bond principles that serve as a guide for issuers and a standard for disclosure, according to Grossman.
Individual retail investors from Massachusetts will have the first opportunity to purchase these bonds on Dec. 9.
The trust provides subsidized loans to cities and towns for clean water and drinking water infrastructure development. Since its establishment in 1989, it has lent more than $6 billion to improve and maintain water quality.
