PACE Funding Group, LLC, a California-based specialty finance company, announced today that it completed a $ 107 million securitization of residential Property Assessed Clean Energy (PACE) assets. The financing supported property improvements for energy efficiency, renewable energy, water conservation, and hurricane resiliency measures. Kestrel Verifiers provided a Second Party Opinion to support the green bonds designation for the senior notes.
Municipal “green bond” designations by various market participants are complicating how investors domestically and internationally view and understand the market for those bonds. Kestrel, a Climate Bonds Initiative Approved Verifier, describes how external reviews following internationally accepted standards help contribute to the standardization and growth of the green bond market.
The Milwaukee Metropolitan Sewerage District (MMSD), one of the nation’s largest and most highly regarded leaders in wastewater treatment, stormwater management, and green infrastructure issued the first-ever Certified Climate Bond for a combined wastewater and stormwater program in the United States. The bond was verified by Kestrel Verifiers, a Climate Bonds Initiative (CBI) Approved Verifier, and Woman-Owned Small Business, based in the US.
Kestrel Verifiers is offering a new service that lets underwriters add green, social and sustainable designations to competitive municipal bond sales.
Connecticut Green Bank unveiled its plans to bring to market approximately $15 to $20 million of new $1,000 face value “Green Liberty Bonds” in recognition of the 50th anniversary of Earth Day. Last year, the Green Bank worked with Kestrel Verifiers to certify the 2019 notes against the Climate Bonds Standard. The Green Bank considers Kestrel to be the “gold standard” in green bond verification and has engaged the firm to verify the new Green Liberty Bonds.
The public pension, the second-biggest in the nation, is selling $281 million in tax-exempt municipal green bonds at a time when wealthy Californians are snapping up such debt to drive down their tax bills and when buyers are increasingly seeking investments intended to lessen the impact of climate change. Kestrel Verifiers provided an external review on the alignment of the securities with the Climate Bonds Standard.
Minneapolis returns to the market Wednesday with its second green-designated general obligation deal to finance its new public service center. Kestrel concluded in its opinion that the city’s project and financing, allocation and oversight is aligned with the Green Bond Principles and the United Nations Sustainable Development Goals.
As the acceleration of green investing continues, questions, comments and misconceptions abound. In this article, Kestrel addresses green bond questions from various market participants.
The Sacramento California Municipal Utility District is issuing $400 million in Electric Revenue Bonds through negotiated sale. The bonds are broken up into 2019 Series A, Series B, and Series G. A portion of the 2019 Series G bonds are designated as Green bonds for LEED certified renovations and upgrades to the Headquarters Building. Kestrel Verifiers provided the independent second party opinion.