Last week, the State of Washington sold over $53 million of General Obligation Green Bonds. The bonds were designated as Green Bonds based on the planned use of proceeds for projects deemed to provide environmental benefits. The state has indicated that proceeds will be used for projects identified as green project categories:
- Protection of Puget Sound,
- Habitat Conservation,
- Energy Efficiency and Conservation, and
- Clean Water Projects.
In keeping with Green Bond principles, the state will provide investors with information about the funding of actual projects and programs once the bond proceeds have been spent.
As with other General Obligation bonds issued by the state, investors in the Green Bonds benefit from the state’s irrevocable pledge of its full faith, credit and taxing power to payment of the bonds. As a result, the credit quality of the Green Bonds is equal to other Washington State G.O. bonds, which are rated Aa1 by Moody’s and AA+ by both S&P and Fitch. Based on strong demand, the State increased the issue size to meet the amount of orders for them. The price and yield of the Green Bonds was comparable with other G.O. debt issued by the state last week, which made them an attractive addition to all of our portfolios focused on impact investing.