Connecticut plans to issue $250 million to finance wastewater and drinking water infrastructure projects statewide in its first all-green bond sale.
State officials will offer the bonds to individual investors on a priority basis during a two day retail period on April 20 and 21. Institutional pricing and sale is scheduled for Earth Day, April 22.
The sale follows Connecticut's first issuance of green bonds last fall, a $60 million offering which was part of a $300 million general obligation sale.
On the clean water side, proceeds will fund water pollution control facility upgrades in Hartford, Bridgeport, Cheshire, Manchester, New Haven, Plymouth, and the Mattabassett District water pollution control facility, which processes wastewater from several central Connecticut communities and discharges clean water into the Connecticut River. The facility upgrades will reduce the amount of nutrients, including nitrogen and phosphorus, which are discharged into the state's rivers and ultimately Long Island Sound.
Drinking water projects that will be financed include new water main transmission lines and pump station upgrades in New London, Norwalk, and Norwich, as well as the upgrade of water treatment facilities in Meriden and West Hartford.
Moody's Investors Service rated the bonds Aaa. Standard & Poor's and Fitch Ratings assigned equivalent AAA ratings.
According to state Treasurer Denise Nappier, Connecticut will again follow the process guidelines as specified by the green bond principles, a voluntary standard that a group of environmental finance experts and active banks established last year.
She said green bond offerings are designed to meet the needs of an expanding investor group with mandates to invest in sustainable projects.
Massachusetts two years ago became the first state offering green bonds, modeling its sale after the World Bank's inaugural 2008 issuance. To date, roughly 20 municipal issuers have issued $3.7 billion of such bonds. This year alone, eight issuers have sold $1.04 billion.
