GROSSMAN ANNOUNCES UPCOMING $350 MILLION “GREEN BOND” SALE
Bond Proceeds will Fund Environmentally Friendly Projects
Treasurer Steven Grossman announced today that his office will be selling $350 million of Green Bonds next week, with the proceeds being used to fund environmentally beneficial projects across the Commonwealth. The transaction follows in the footsteps of the Commonwealth’s 2013 Green Bond Sale, the first of its kind in the municipal bond market.
“Many investors really care about how their money is used, and last year’s demand for Green Bonds was overwhelming. People like the idea of investing with an impact,” said Grossman. “Green Bonds give individual and institutional investors the ability to invest directly in projects that will improve the environment and have a tangible and beneficial impact.”
The bond sale, underwritten by Morgan Stanley, is expected to begin on Monday, September 15th. Individual investors only will have the ability to place orders from Monday through Wednesday, and institutional investors will be allowed to purchase the bonds on Thursday. The Commonwealth has identified four categories of projects that are expected to be funded from the sale:
· Clean water & drinking water projects;
· Energy efficiency and conservation projects in state buildings;
· Land acquisition, open space protection & environmental remediation projects; and
· River revitalization & preservation and habitat restoration projects.
"As a leading underwriter of green bonds and a strong supporter of the Green Bond Principles, Morgan Stanley is proud to partner with the Commonwealth of Massachusetts as they break new ground in the development of environmentally‑oriented capital investments," said Tom Nides, Vice Chairman at Morgan Stanley. "Our firm is committed to helping clients pursue sustainable investing solutions that can address social, economic and environmental challenges at scale."
In addition to those four categories, one large project has been identified that will be funded with proceeds of the Green Bond sale, the New Bedford Marine Commerce Terminal project. The New Bedford Marine Commerce Terminal will be the first facility in the nation designed to support the construction, assembly, and deployment of offshore wind projects. As part of construction, the project is expected to include the dredging and removal of approximately 250,000 cubic yards of contaminated sediment caused by industrial waste generated during the 1930’s and 1940’s as well as the creation of environmental and habitat restoration areas.
The Green Bonds are general obligation bonds of the Commonwealth secured by the state’s full faith and credit pledge. The bonds will be assigned the same ratings as other Massachusetts general obligation bonds. Updated ratings are expected to be released on Friday, September 12th.
For more information on the Green Bond sale, please visit www.massbondholder.com. Please note the financing schedule is preliminary and is subject to change.
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