Massachusetts on Sept. 15 begins a three-day retail order period for $350 million of general obligation environmental green bonds.
The commonwealth will use green bond proceeds to fund environmentally beneficial projects, according to state Treasurer Steven Grossman. It sold $100 million in such bonds in 2013.
"We're proud to be a first mover in this space," assistant treasurer for debt management Colin MacNaught told investors in Friday's
The bonds, all fixed-rate obligations, are being offered across several different maturities ranging from 2019 to 2031, according to MacNaught.
Fitch Ratings and Standard & Poor's rate the bonds AA-plus, while Moody's Investors Service assigns an Aa1 rating.
"The commonwealth will continue to take proactive measures to close budget gaps if they emerge and continue its trend of strong financial management," Moody's said in a report.
Institutional pricing for the green bonds is scheduled for Thursday, after the retail order period.
A $330 million refunding is also on the Massachusetts calendar this week, according to Thomson Reuters.
Morgan Stanley is the lead underwriter for both the Series 2014E new money green bonds and the Series 2014C refunding bonds.
Green bonds will fund clean water and drinking water projects; energy efficiency and conservation projects in state buildings; land acquisition, open space protection and environmental remediation projects; and river revitalization and preservation and habitat restoration projects.
In addition, proceeds will benefit construction of the New Bedford Marine Commerce Terminal, which state officials say will be the first facility nationwide designed to support the construction, assembly and deployment of offshore wind projects.
Work will include dredging and removal of about 250,000 cubic yards of contaminated sediment caused by industrial waste generated during the 1930s and 1940s as well as the creation of environmental and habitat restoration areas.
Public Financial Management Inc. is financial advisor to both bond sales. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC is bond counsel and disclosure counsel. Edwards Wildman LLP is representing the underwriters.
Refunding maturities will run from 2019 to 2025.
Beginning next week, Massachusetts expects to sell $1.2 billion of GO revenue anticipation notes, its annual cash-flow borrowing. According to MacNaught, the financing goal is to augment cash so that balances remain above $500 million month-end threshold.
As in past years, officials are breaking the note repayment into multiple pieces to smooth the cash flow the fourth quarter of fiscal 2015.
Massachusetts expects to hold its next investor conference call, a review of its pension actuarial report, around Nov. 7.
