Connecticut Treasurer Denise Nappier's office plans a $650 million general obligation bond sale next week, including $65 million of green bonds.

HARTFORD, Conn. — Connecticut will come to market next week with a $650 million general obligation bond sale that includes a $65 million green-bond series.

The sale is scheduled for Tuesday, after a one-day exclusive pre-sale for retail investors, according to officials from state Treasurer Denise Nappier's office.

Barclays is senior manager for the negotiated sale. Day Pitney LLP is lead bond counsel and lead disclosure counsel.

The fixed-rate serial bonds are structured as level principal maturing from Nov. 15, 2016, through Nov. 15, 2035. The bonds will carry a 10-year call provision. Expected delivery date is Dec. 1.

The Series G green bonds — Series F is the mainstream $585 million — will provide funding for priority wastewater infrastructure projects statewide through Connecticut's clean water program. Projects include water pollution control for the Mattabassett District in Cromwell, the Metropolitan District Commission in Greater Hartford, and the Greater New Haven Water Pollution Control Authority.

It's Connecticut's third green bond sale. The state sold $60 million of green bonds as part of a $557 million sale in November 2014, and held an all-green $250 million sale in April that generated more than $73 million in orders from individual investors during a two-day retail period.

"The Connecticut Treasury's entry into this exciting, rapidly expanding marketplace demonstrates that government can play a role in supporting environmental sustainability," said Nappier.

Massachusetts two years ago became the first state to sell green bonds, modeling them after the World Bank's sale in 2008. States including California, New York State and Rhode Island have joined the mix as have the District of Columbia and Massachusetts Institute of Technology.

Connecticut's green-bond issuance resonated with Rhode Island General Treasurer Seth Magaziner. "The folks there have done some good work as well as other states, including California," Magaziner said in a Bond Buyer interview at the state capitol in Providence in September.

Moody's rates the bonds Aa3. Fitch Ratings and Standard & Poor's rate them AA. Connecticut officials expect Kroll Bond Rating Agency to maintain its AA rating.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.