Portland Water District sell's first series of Green Bonds
The Portland Water District expects to sell $6,500,000 Water System Bonds on July 16, 2019, to provide funds to finance improvements throughout the District’s distribution system, including but not limited to repair and replacement of water mains, services lines, valves and related appurtenances, including the costs of issuance.
The Trustees of the District have determined that the 2019 Bonds will provide funds to finance the installation and renewal of water main improvements and other related infrastructure upgrades and improvements which are environmentally beneficial projects designed to ensure safe drinking water for the public in the State in accordance with State, federal and local standards. Therefore, on June 24, 2019, the Trustees adopted Resolution 19-026 designating the Bonds as “Green Bonds.”
The purpose of labeling the bonds as Green Bonds is to allow purchasers of the Bonds to invest directly in bonds that finance such environmentally beneficial purposes. The holders of the bonds do not assume any specific project risk or economic benefit related to any of the funded projects as a result of the Green Bonds designation.
This is the first series of Green Bonds that have been issued by the District.
The first U.S. municipal bond to use the Green Bond label in its offering documents was issued by Massachusetts in 2013 whereby issuers must commit to deploying 100% of bond proceeds for environmental sustainability-oriented activities in order for their bond to be identified a Green Bond.
Each time that the District sells its bonds in the public market, it re-applies for a rating review and assignment. The District’s 2018 Bonds’ prior ratings were affirmed by Moody's as Aa3; S&P’s AA. The assignment of bond ratings for the 2019 Bonds is expected to be received by the District on or about July 12.