Vermont Issues $28.5M in Green Bonds

A $28.52 million green bond sale by Vermont on Oct. 5 will help fund sustainable infrastructure projects, according to State Treasurer Beth Pearce.

The transaction marked the first time Vermont sold green bonds targeted toward investors with socially responsible investment objectives. Pearce said proceeds from the green bond sale will be used to fund drinking water and water pollution control projects throughout the state. State entities that will benefit include the Agency of Natural Resources, Vermont Agency of Agriculture and the Housing Conservation Board.

“Utilizing Green Bonds is a win-win,” said Pearce. “Use of the Green Bond designation expands the State’s network of potential investors and results in an increased demand for our bonds.”

Morgan Stanley was senior manager for the negotiated sale. Bank of America Merrill Lynch, Citigroup and JPMorgan served as co-managers.

Vermont bonds are rated triple-A by Moody’s Investors Service and Fitch Ratings. Standard & Poor’s rates Vermont AA-plus.

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