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.
RethinkWaste in San Carlos, California, issued Green Bonds consisting of $48,775,000 in Solid Waste Enterprise Refunding Revenue Bonds Series 2019A and Solid Waste Enterprise Revenue Bonds Series 2019B (for new projects) to make various environmental upgrades at its agency-owned, Shoreway Environmental Center. Kestrel Verifiers provided a Second Party Opinion confirming the bond’s alignment with the Green Bond Principles. A second opinion against the Green Bond Principles was done by Kestrel Verifiers, an approved verifier by the Climate Bonds Initiative. These are the first Green Bonds floated in San Mateo County for green infrastructure and waste reduction.
The Climate Bonds Standard Board has confirmed Kestrel Verifiers as an Approved Verifier under the Climate Bonds Standard and Certification Scheme.