The Bond Buyer: Hudson Yards rides upgrades into $452 million sale

The city-controlled Hudson Yards Infrastructure Corp.’s Series 2022A green bonds refund an outstanding 2012 bond that partially financed Hudson Yards development. The Subway Extension to be refinanced with the bonds is integral to sustainable urban development in the city. Kestrel Verifiers provided an external review on the green bonds, confirming alignment with Green Bond Principles under the eligible project category of Clean Transportation.

The Equitable Facilities Fund is issuing a third Social Bond. The bond finances low-cost loans to high-performing charter schools in underserved and vulnerable communities, and conforms with ICMA’s Social Bond Principles as verified by Kestrel. This will be the largest third-party verified social bond issuance in the education sector.

San Diego Unified School District’s all-green $1 billion mix of taxable and tax-exempt general obligation bonds priced in October 2021. All five series received a green bond designation from Kestrel Verifiers. This is the District’s first externally reviewed deal.

Ohio State issued its first Green Bonds to finance a large new inpatient hospital in Columbus. Healthcare facilities have particularly high energy demands and Kestrel was pleased to see that the school has worked carefully to maximize efficiency, align with the campus sustainable building standards, and take steps towards achieving Ohio State’s carbon neutrality goal.

Kestrel reviewed Minnesota public university system’s first sustainability-designated bonds. The bonds finance the design of a unique clinical research facility on the Twin Cities Campus. Kestrel sees key features that will challenge health inequities and provide critical instructional and research space. Over 60% of Minnesota’s health professionals are educated at the University’s medical school.

Investors rallied around Oberlin College and Conservatory’s path-breaking geothermal infrastructure project that’s aligned with the goals and targets of the Paris Climate Agreement. This is only the second Certified Climate Bond offering among US colleges and universities, and third in the world. Kestrel Verifiers provided the review to support certification. The bonds attracted bids totaling nearly three times the amount of the offering.

GRU issued its first-ever green bond this July to fund water and wastewater improvement projects. Kestrel’s Second Party Opinion confirmed the bond-financed projects promote environmental sustainability and resiliency, and align with the Green Bond Principles.

As the market for ESG-certified bonds grows, Oregon-based Kestrel Verifiers is growing along with it. Kestrel has delivered roughly 68% of the second-party opinions for ESG projects in US public finance. The firm has handled $8 billion in par since its inception in 2019.

California Ethanol + Power plans to price $575 million in bonds through a municipal conduit in June or July to fund construction of the alternative fuel and energy plant to convert sugarcane into ethanol.