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Columbia issues green bonds to fund stormwater improvements

Staff Report //December 10, 2018//

Columbia issues green bonds to fund stormwater improvements

Staff Report //December 10, 2018//

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The city of Columbia is issuing its first-ever green bonds, a $37.9 million initiative to upgrade its stormwater system.

The bond sale has been certified by the Climate Bond Initiative, an independent nonprofit that rates environmentally responsible investments, according to a news release. The bonds received grades of Aa2 from Moody’s and AA+ from S&P and drew orders from 36 investors on their Dec. 6 issuance, the release said.

Proceeds will go toward a $95 million investment to improve the city’s drainage and stormwater systems during the next five years. Upgrades will include improvements to the city’s stormwater conveyance system and stormwater detention facilities as well as stream restoration.

“As climate change brings more extreme weather, cities must prepare by building more resilient infrastructure that can withstand more powerful storms, even as populations increase,” Columbia Mayor Steve Benjamin said in the release. “At the same time, we must invest smartly and in an environmentally responsible way so that we are helping to mitigate these problems and leave a safer, more sustainable world for the next generation.”    

The sale, managed by financial services firm Siebert Cisneros Shank & Co. LLC, is expected to close Dec. 19.

“By issuing green bonds, the city has joined America’s leaders in environmentally friendly infrastructure investment,” CEO Suzanne Shank said. “The green bond product is a natural fit for municipalities, especially during a time when investing in our infrastructure is imperative.”

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